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Wednesday 20 December 2017

ITIC warns about re-emergence of people-smuggling scam
International Transport Intermediaries Club (ITIC) has warned ship agents about the re-emergence of a scam whereby they are being used by people-smugglers to cover the movement of illegal migrants.

The basic pattern of the scam is for owners or managers to ask an agent to attend a vessel's call, and to provide assistance with crew changes. Usually the owner or manager will be previously unknown to the agent. The approach is a sham, but the agent’s involvement will provide cover for the migrants’ arrival in the country. The migrants will then promptly disappear, and the agent will be left with unpaid hotel bills and may face fines from immigration authorities as well as being liable for detention and repatriation costs if the migrants are caught.

ITIC has reminded all agents worldwide to be vigilant when being approached to carry out crew changes by owners or crew managers who are unknown to them.

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com


For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com

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Tuesday 19 December 2017

Shipping confidence at highest level for three-and-a-half years

Shipping confidence held steady at its highest rating in the past three-and-a-half years in the three months to end-November 2017, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens.

The average confidence level expressed by respondents was unchanged at the level of 6.2 out of 10.0 recorded in the previous survey in August 2017. Confidence on the part of charterers was significantly up, from 4.7 to 7.7, the highest rating recorded for this category of respondent since the survey was launched in May 2008 with an overall rating of 6.8. Managers (up from 5.8 to 6.1) were also more optimistic, while brokers’ confidence was unchanged at 6.3. The rating for owners, however, fell from 6.5 to 6.4. Confidence levels were down in Asia, from 6.4 to 5.7, and unchanged in Europe and North America, at 6.3 and 5.8 respectively.

The likelihood of respondents making a major investment or significant development over the next 12 months was down from 5.4 to 5.3 out of 10.0. Charterers’ confidence, however, was up from 4.0 to 6.2. Expectations on the part of owners and brokers were up from 5.8 to 5.9 and from 4.4 to 5.3 respectively, but down from 5.4 to 5.3 for managers. Asian respondents (down from 5.9 to 5.0) were less confident in this regard, but in North America the rating was up from 4.9 to 5.4. In Europe, expectations held steady at 5.2.

Although overall expectations of making major investments over the next 12 months were marginally down on the three-year high recorded in the previous survey, several respondents saw encouraging signs of recovery, and potential for further improvement, particularly in the dry bulk sector. One respondent said: “Undeniably, things are a little better, but there is not such a significant improvement that we can break out the champagne and celebrate a recovery.”

59% of respondents expected finance costs to increase over the coming year, up from 50% last time to equal the highest figure since October 2008. Owners’ expectations were up from 48% to 54%, while the increase for charterers was from 67% to 83%, and for brokers from 42% to 60%. Managers, meanwhile, recorded a fall from 62% to 61%.

Despite a fall from 27% to 23%, demand trends continued to be the factor expected to influence performance most significantly over the coming 12 months followed by competition and finance costs. One respondent said: “Shipping continues to be volatile and unstable, with an oversupply of tonnage, and new finance continuing to pour in, while geopolitical issues and new regulations are causing disruption.”

The number of respondents expecting higher freight rates over the next 12 months in the tanker market was down by 1% on the previous survey to 44%, while there was a one percentage-point fall, to 13%, in those anticipating lower rates. There was a six percentage-point fall, to 50%, in the numbers expecting higher rates in the dry bulk sector, and a five percentage-point increase to 12% in the numbers anticipating lower rates. In the container ship sector, the numbers expecting higher rates dropped by four percentage points to 36%, while there was a two percentage-point fall, to 15%, in those anticipating lower container ship rates.

Net sentiment was positive in all the main tonnage categories. It was unchanged in the tanker market at +31, but down in the dry bulk market from +49 to +38, and in the container ship sector from +23 to +21.

In a stand-alone question, respondents were asked to estimate where the US Federal Reserve’s Federal Funds Rate would stand in 12 months’ time. 35% put the figure at 1.50%, with 24% opting for 1.75%. While 6% of respondents thought the figure would be 2.00%, 19% opted for 1.25%. Levels of 1.00% and less than 1.00% were each cited by 8% of all respondents, just 1% of whom expected the rate to be more than 2.00%. One respondent said: “Increased economic uncertainty, relations with North Korea, and Iran trade restrictions are among the factors which will increase the risk level in the market and lead to higher interest rates.” Another simply said: “Rates will continue to rise until there is a market correction.”

Richard Greiner, Moore Stephens partner, Shipping & Transport, says, “Confidence is at its highest level for three-and-a-half years, testament to the industry’s remarkable durability.

“Charterers are leading the way in terms of improved confidence and appetite for new investment. There is optimism in the dry bulk trades, and evidence of continuing improved confidence in the gas sector. The Baltic Dry Index, meanwhile, has risen by over 50% in the past six months, and net sentiment in all three main tonnage categories remains positive.

“Not all our respondents were upbeat and uncertainty persists, for example, over how and when to comply with the Ballast Water Management Convention and the true extent of cyber-crime. But the portents, overall, are encouraging.

“A slowdown in newbuilding activity has started to redress the imbalance in supply and demand, and that should be reflected in improved freight rates. There is an appetite for investment, and finance is available. The shipping recovery might not yet be fully under way, but 2017 may come to be regarded as the year when the downward spiral was halted.”

Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping, offshore maritime and transport & logistics adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 626 offices of independent member firms in 108 countries, employing 27,997 people and generating revenues in 2016 of $2.7 billion. www.moorestephens.co.uk


For more information:
Richard Greiner
Moore Stephens LLP
Tel: +44 (0)20 7334 9191
richard.greiner@moorestephens.com

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Thursday 7 December 2017

Liberia re-elected to IMO Council

LIBERIA has been re-elected to the Council of the International Maritime Organization (IMO), a position it has held continuously since 2012.

Commissioner of the Liberia Maritime Authority, Dr James Kollie, says, “It is very gratifying to see Liberia reconfirmed in its position as a leading maritime nation and decision-maker at the IMO. Liberia is among the most proactive and responsible maritime nations in the world, in accordance with its position as the leading quality open registry serving the global shipping industry and ensuring seafarers’ welfare.

“Liberia has always been a committed member of IMO, since its formation, as the sole international competent authority ensuring maritime safety, security, environmental protection and clean seas. As such, it is pleased to reconfirm its place on the IMO Council. Moreover, increased political stability and economic growth and prosperity have made Liberia an attractive country for foreign investment.”

The Liberian-flag fleet currently comprises over 4,200 ships aggregating more than 150 million gross tons, making it the second-largest ship registry in the world. It continues to grow at an unprecedented rate as part of a policy of planned, controlled expansion involving quality shipowners and quality ships. Liberia features on the White List of all Port State Control Memorandums of Understanding, worldwide.

The IMO Council, which is elected by the IMO Assembly for two-year terms, is the executive organ of the IMO, composed of 40 of the 172 IMO member states. It is responsible for supervising the work of the IMO, including co-ordination of the activities of its committees and sub-committees, consideration of the draft IMO work programme and budget, appointment of the Secretary-General, and entering into agreements concerning the relationship of the IMO with other organizations.

The Liberian Registry is the world’s most technologically advanced maritime administration. It has a long-established track record of combining the highest standards of safety for vessels and crews with the highest levels of responsive and innovative service to owners. Moreover, it has a well-deserved reputation for supporting international legislation designed to maintain and improve the safety and effectiveness of the shipping industry and protection of the marine environment. www.liscr.com

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Superyacht refit overspend dispute illustrates danger of acting outside contract

International Transport Intermediaries Club (ITIC) has warned against the dangers of marine service providers informally offering advice which falls outside the scope of their contracts.

ITIC cites the case of a yacht manager contracted to provide crew management and ISM consultancy for a superyacht. Although the manager was not contracted to provide technical management, the owner sought its advice on two refits. The manager reviewed the scope of works and the budgets from the refit yards as a favour to its client.

Unfortunately, both refit budgets overran and the owner claimed that the manager had been in breach of its duty of care by failing to recommend suitable repair yards, failing to budget properly and failing to properly supervise the refits. The owner alleged that, while the management contracts had said that the manager was not providing technical management, it had in fact done so.

The owner made a formal claim against the manager for EUR900,000 and a sole arbitrator was appointed by the parties. The manager denied that it had accepted any responsibility for the refits, maintaining that the owner’s own staff had chosen the yards. The manager had commented on the scope of works and the budgets provided and, far from managing the refits, had simply been kept in the loop in correspondence, despite the owner’s claim that it had expected the manager to take an active role.

The arbitrator found that the majority of overspend was due to the works which were required by the yacht’s classification society. The owner had not suffered a loss due to the alleged negligence of its manager, and the owner was obliged to pay the costs to keep the yacht in class. Ultimately, ITIC agreed to the payment of $25,000 in settlement, much less than the owner claimed it had incurred in legal costs. ITIC also paid the cost of defending the claim of over $110,000.

ITIC says, “Although the owner’s allegations lacked merit, the claim is an illustration of the dangers of informally providing advice outside the scope of the contract.”

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com


For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com

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Tuesday 5 December 2017

London P&I Club warns of increased risk at congested Chittagong anchorage

The London P&I Club has noted a marked increase in accidents involving ships at anchor in the Bangladeshi port of Chittagong, which it says has become an international hot-spot for anchor-dragging incidents.

The club notes that there has been a significant rise in the number of ships calling at Chittagong in recent years and that, as most bulk carriers discharge into lightering barges, congestion is increasing at the port’s outer anchorage. Last year, the average number of ships lying at anchor at any time was between 60 and 90.

In the past year, the club has experienced a rise in incidents involving ships at anchor in Chittagong, exacerbated by the increased number of vessels open to monsoon-type conditions, strong prevailing currents and poor holding ground. It says it is paramount for mariners to remain vigilant while at anchor in the port, with the consequences of reported incidents ranging from minor contact damage with other ships, to groundings and the associated risk of pollution,

In the latest issue of its StopLoss Bulletin, the club has drawn the attention of its members to the Chittagong Port Authority guidelines for masters anchoring at Chittagong Outer Anchorage. It says that these guidelines, together with local sailing directions and other salient port information, should be considered during the passage planning stage.

The London P&I Club is one of the world’s leading mutual marine liability insurers. It is a prominent member of the International Group of P&I Clubs, playing a key role in co-ordinating and promoting the collective strength of the P&I industry on behalf of the global shipowning community. www.londonpandi.com

More information:
Carl Durow
London P&I Club
Carl.Durow@londonpandi.com
Tel: +44 (0)207 72 8039


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