The Indian government has drafted a legislation to ratify the Hong Kong Convention on safe ship-recycling, which was adopted by the International Maritime Organization (IMO) in 2009.
The new bill is to provide for the regulation of ship recycling in a safe and environmentally sounder manner and take care of occupational health and safety risks related to workers engaged in the recycling process.
India’s Ministry of Shipping informed that the matters related to shipping are currently governed by Ship Breaking Code, 2013, as amended. The proposal to introduce the Safe and Environmentally Sound Recycling of Ships Bill, 2017, is open for comments and suggestions of stakeholders until January 7, 2018.
Under the proposal, the government would designate a national authority which is to administer, supervise and monitor all activities related to ship-recycling.
The Hong Kong Convention is to enter into force only 24 months after it is ratified by 15 states, in order to represent 40% of world merchant shipping by gross tonnage. Only six states have acceded so far, including Norway, France, Denmark, Belgium, Panama and Congo.
In September 2017, India signed a loan agreement for a project to upgrade the environment management plan at Alang-Sosiya ship recycling yards.
The total cost of the project, which is likely to be completed by 2022, will be USD 111 million, out of which USD 76 million will be provided as soft loan from Japan International Cooperation Agency (JICA).
Out of the remaining amount, USD 25 million as taxes and fees will be borne by Government of Gujarat and the balance USD 10 million will be shared by Ministry of Shipping and the Government of Gujarat.
The country earlier informed that the project would help the Alang recycling yards to comply with international safety and environmental regulations.
Maritime regulation for autonomous ships should be decided at the international level, a new report published by The Danish Maritime Authority (DMA) recommends.
Such regulation should be made more flexible if it is to support the development of autonomous ships, the report says.
Identifying where changes in maritime regulation are needed, the report will be used as a platform for the future effort of DMA to develop regulation and make it digitalization-ready.
“The development of autonomous ships is fast-moving and we must be at its forefront. However, part of the current regulation is based on traditions dating back to the age of sail. That needs to improve. The regulation of autonomous ships shouldn’t be a hindrance to further advances,” Brian Mikkelsen, Denmark’s Minister for Industry, Business and Financial Affairs, commented.
As explained, the overall approach to regulation of autonomous vessels is that they must be at least as safe as conventional ships. The report provides a recommendation that regulation in this area should be agreed upon internationally and more specifically in the International Maritime Organization (IMO). Denmark is already working hard at getting this topic at the top of the agenda at international level.
“We must be able to seize opportunities created by development of new technology. Denmark has a strong maritime tradition and we want to stay in the lead when it comes to development and testing of technology,” Mikkelsen pointed out.
“In a globalized industry, regulation and standards for autonomous ships must be international. This is the only way to ensure significant global development in this area,” he added.
A new ballast water treatment system (BWTS) specifically designed for large dry bulk and ore carriers has been launched.
Developed by the UK-based Coldharbour Marine, the system uses the company’s existing inert gas based GLDTM treatment plant to meet the needs of large bulk carriers, which often ship large volumes of ballast water in upper wing tanks and discharge it directly into the sea.
The IMO International Convention for the Control and Management of Ships' Ballast Water and Sediments presents specific challenges for operators of bulk carriers by setting out specific discharge standards which must be met, according to Coldharbour Marine.
Most system technologies work by treating the ballast water at the point it is taken on board at the cargo discharge port and usually incorporate a filtration process and chemical dosing. Delays during ballast loading due to filtration issues or system breakdown are only one of the potential pitfalls, as explained by Andrew Marshall, Coldharbour Marine's Chief Executive.
"Big bulk carriers are usually deployed on long-haul routes and lengthy ballast voyages can lead to significant organism regrowth. Ships fitted with in-line BWTS technologies cannot guarantee full compliance with discharge standards at the end of a long ballast voyage," Marshall said.
In contrast, the newly launched system is not an in-line process and does not treat ballast water at uptake. Instead, it is an in-voyage process, so there are no filters and no potential problems relating to flow rates, pressure drops, or power consumption during ballasting.
"Some try to ignore the regrowth issue, but the fact is that no BWTS technology is 100% kill effective. If treatment is only undertaken during uptake, the few organisms that survive will thrive and multiply over a long ballast voyage in the food rich, benign environment of the ballast tank. The longer the ballast leg, the greater the risk of significant regrowth, meaning that ballast water could easily fail to meet discharge standards several weeks later," Marshall continued.
Bulkers sometimes load extra 'heavy weather' ballast water in cargo holds, which inevitably faces contamination by cargo residues. In-line systems would find this water hard to process and could be damaged by it. In this case, the company has developed a pipe circuit to allow ballast to be pumped from the various tanks through robust gas lift diffusion (GLD) units mounted in the machinery space – instead of in-tank, meaning that water can be returned to the tanks via multiple outlets to ensure that contents are stirred and treated.
"Now that the IMO's Ballast Water Convention has entered force, vigilant port states will be watching bulk carrier operators closely. Operators of these vessels have no time to lose in assessing how they will meet convention requirements," Marshall concluded.
THE Alliance is establishing a USD 50 million insolvency contingency fund to ensure smooth cargo flow in the event of another ocean carrier bankruptcy or catastrophic failure.
The parties to THE Alliance agreement submitted an amendment for the creation of the fund with the US Federal Maritime Commission (FMC) on September 14 and the Commission granted the request of petitioning parties for an expedited review. The amendment is effective immediately, the FMC said.
Each of the members of the alliance, including Hapag-Lloyd AG and Hapag-Lloyd USA LLC (acting as one party), Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Yang Ming Marine Transport, would initially contribute USD 1 million into the contingency trust fund and a further USD 9 million in additional funds or through a letter of credit.
The agreement also establishes procedures for the orderly removal and/or replacement of vessels in case of a bankruptcy and the rights of the remaining parties to negotiate directly with agents and subcontractors of the affected party. The contingency fund would be administered by a trustee, the FMC informed.
"Last year's collapse of Hanjin Shipping was a wake-up call for the entire ocean transportation and logistics chain. Over USD 14 billion worth of cargo was stranded at sea on 100 ships scattered around the globe. It is so important that another Hanjin debacle does not happen again," William P. Doyle, FMC Commissioner, said.
"I applaud the innovative actions taken by carriers of THE Alliance. It is a responsible commercial reaction to the events of last year and it serves to assure the shipping public that its cargo will be delivered in a reliable and timely manner," Doyle added.
Specialist marine and energy insurer Standard Club P&I has issued guidance on issues encountered due to the disruption to cargo vessels caused by Hurricane Irma.
The guidance, given from an English law perspective, includes deviations from route, changing the place of discharge, voyage charters - named load and discharge ports, frustration of contracts, force majeure, time charters – unsafe ports and berths, time charters – payment of hire, and cargo damage.
Where cargo-carrying vessels have deviated from their planned route to avoid and/or shelter from hurricane conditions, this will give rise to the late delivery of cargo and to potential losses to cargo receivers.
Cargo receivers who have incurred such losses, however, will not be entitled to recover where their cargo has been carried under bills of lading.
If it is not possible for cargo to be discharged at the place of discharge named in a bill of lading, the terms of the bill of lading may entitle the carrier to discharge the cargo elsewhere. If the terms of the bill of lading do not entitle the carrier to discharge elsewhere, it may nonetheless be possible for the carrier to agree with the holder of the bill of lading that the cargo is to be discharged at a substitute place of discharge.
Additionally, where the terms of a voyage charter name a port and/or berth at which cargo is to be loaded, or at which cargo is to be discharged, and it is not possible for cargo to be loaded or discharged at that place, further terms in the charter may give a right to the owners of the vessel to load or discharge cargo at a substitute place.
If it is not possible to load or discharge cargo at an agreed place of loading or discharge specified in a contract of carriage and there is no term in the contract permitting a substitute place to be used, the contract may be viewed as frustrated.
"If a contract is frustrated, the parties will no longer be obliged to perform it, and neither party will be able to recover from the other for any losses arising from non-performance," the Standard Club said.
Regarding force majeure, there is no general concept of force majeure under English law, or general right to declare force majeure as a way of avoiding or limiting contractual obligations. However, where terms in a charterparty or bill of lading specify what is to be considered force majeure, and set out what rights and obligations the parties are to have if force majeure occurs, those terms "will be effective".
Furthermore, time charterers of vessels are under an implied obligation to order the vessel only to ports and berths that are safe, and not to ports and berths that are unsafe. If a vessel is damaged at a port or berth due to an abnormal occurrence, however, this will not place the time charterer in breach of its implied obligation.
Where the time charterer of a vessel has ordered the vessel to a port or berth that is unsafe, there is an obligation upon the time charterer to name a substitute port that is safe.
Under time charters, hire continues to be payable for a vessel unless circumstances have arisen which bring the vessel 'off hire' as defined in the charterparty terms.
"Whether or not delays caused to vessels by Hurricane Irma will have brought time chartered vessels off hire will therefore depend upon the charter terms agreed for each vessel, which may need to be scrutinised closely by the owners and charterers concerned," according to the Club.
Finally, if cargo-carrying vessels have been unable to avoid the effects of Hurricane Irma, with the result that cargo on board has become damaged, the carriers of the cargo may have a defence to claims for that cargo damage under Article IV Rule 2 of the Hague and Hague Visby Rules which states that "neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from…Perils, dangers, and accidents of the sea and other navigable waters."
The above defence will only be available, however, to carriers who have exercised due diligence to make their vessel seaworthy before and at the beginning of the voyage.
South Korean shipbuilder Hyundai Heavy Industries (HHI) has agreed with its workers to implement a paid leave rotation scheme as a way of coping with work shortage.
The five-week program rotation would help resolve the issue of the idle workforce, HHI said, enabling the employees to keep their jobs.
The leave system, starting on September 11, was being proposed to unions last month, and it involves around 7 % of the company’s 8,930 workers.
The union seems to have hammered out a deal that involves workers being paid 70% of their average salary, instead of being sent to unpaid break, as was initially proposed.
Separately, Hyundai Heavy Samho Industries said that 2,680 of its production staff will be taking paid leave for five weeks from October 16 to June 24, 2019.
The move is being pursued as HHI is left with a lower order backlog, which currently stands at 85 ships, against last year’s 110 ships, with only ten ships being constructed at the yard at the moment.
Should the ordering activity continue to dwindle the shipbuilder might be faced to close more of its yards.
To remind, in May this year, HHI decided to temporarily close its Gunsan dockyard starting as of July 1, 2017, due to a lack of shipbuilding orders. During the period, maintenance and repair works are scheduled to take place at the site.
The latest workforce-related measure is said to be driven by HHI’s cost cutting efforts aimed at keeping the shipbuilder financially stable.
HHI reported a 49.7 percent drop in its net income during the second quarter of 2017 totaling in KRW 69.2 billion (USD 61.6 million).
The International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention) entered into force on September 8, 2017.
Adopted by the International Maritime Organization (IMO) in 2004, the measure for environmental protection that aims to stop the spread of potentially invasive aquatic species in ships’ ballast water requires vessels to manage their ballast water to remove, render harmless, or avoid the uptake or discharge of aquatic organisms and pathogens within ballast water and sediments.
“This is a landmark step towards halting the spread of invasive aquatic species, which can cause havoc for local ecosystems, affect biodiversity and lead to substantial economic loss,” Kitack Lim, IMO Secretary-General, commented.
“The requirements which enter into force today (September 8) mean that we are now addressing what has been recognized as one of the greatest threats to the ecological and the economic well-being of the planet. Invasive species are causing enormous damage to biodiversity and the valuable natural riches of the earth upon which we depend. Invasive species also cause direct and indirect health effects and the damage to the environment is often irreversible,” Lim said.
“The entry into force of the Ballast Water Management Convention will not only minimize the risk of invasions by alien species via ballast water, it will also provide a global level playing field for international shipping, providing clear and robust standards for the management of ballast water on ships,” Lim concluded.
Under the rules of the convention, all ships engaged in international trade are required to manage their ballast water so as to avoid the introduction of alien species into coastal areas, including exchanging their ballast water or treating it using an approved ballast water management system. Initially, there will be two different standards, corresponding to these two options.
The D-1 standard requires ships to exchange their ballast water in open seas, away from coastal waters. Ideally, this means at least 200 nautical miles from land and in water at least 200 meters deep. By doing this, fewer organisms will survive and so ships will be less likely to introduce potentially harmful species when they release the ballast water.
D-2 is a performance standard which specifies the maximum amount of viable organisms allowed to be discharged, including specified indicator microbes harmful to human health.
New ships must meet the D-2 standard from September 8 while existing ships must initially meet the D-1 standard. An implementation timetable for the D-2 standard has been agreed, based on the date of the ship’s International Oil Pollution Prevention Certificate (IOPPC) renewal survey, which must be undertaken at least every five years.
Eventually, all ships will have to conform to the D-2 standard. For most ships, this involves installing special equipment.
Shipboard ballast water management systems must be approved by national authorities, according to a process developed by IMO. Systems have to be tested in a land-based facility and on board ships to prove that they meet the performance standard set out in the treaty. These could, for example, include systems which make use of filters and ultraviolet light or electrochlorination.
Ballast water management systems which make use of active substances must undergo a strict approval procedure and be verified by IMO.
To date, more than 60 ballast water treatment systems have been given type approval.
Reflecting on the BWM Convention’s entry into force, Sharyn Forsyth, General Manager of Maritime Standards for Maritime NZ, said that the main purpose of the convention is to manage and control the risk posed by biological materials leaving and coming into New Zealand waters. As explained, around 20 or so NZ-flagged ships that travel to overseas ports will be affected by the change in New Zealand’s maritime laws.
Foreign flagged vessels travelling to this country, such as those carrying cargo and cruise passengers, are expected to already comply with some of the initial standards in the convention. Forsyth said that traditionally ships on international voyages took on-board ballast in the coastal waters of one country, after unloading cargo, and then discharged this ballast water at the next port of call when loading more cargo.
“This is why the requirements relate to ships travelling internationally. Ballast water discharge typically contains a variety of biological materials, which often include non-native, nuisance, exotic species that can cause ecological and economic damage,” Forsyth added.
Unmanned vessels are no longer a futuristic concept, but a reality. In Norway, several projects involving the testing of unmanned vessels are currently ongoing. It is only a question of time before we see unmanned vessels operating in international waters.
Maritime law in the wake of the unmanned vessel
In this article we will first look at ongoing projects in Norway and the challenges faced from a national law perspective. Secondly, we will provide an overview of the legal implications for international maritime law, in particular the regulatory framework established through the IMO conventions. Finally we will briefly look at how the unmanned vessel will affect private maritime law, including transportation of goods at sea and insurance.
Maritime law is in many ways a conservative area of law, were traditions are not easily discarded. Even so, maritime law has over the years proved itself flexible and able to adapt to face technological developments.
The master and the crew have traditionally been considered instrumental in ensuring the safe operation of the vessel at sea, and many provisions in the maritime law regulatory framework seeks so achieve this by imposing duties and responsibility on the master and the crew. The introduction of unmanned vessels represents a significant deviation in the operation of the vessel, and will therefore inevitably require careful evaluation of the existing legal framework to make sure that appropriate regulations are in place to ensure safe operation at sea for all vessels, whether manned or unmanned.
An unmanned vessel is in simple terms a vessel which is not operated by an on board master and crew, and covers all vessels from those remotely operated to the fully autonomous. The different categories of unmanned vessels imply different challenges from a regulatory perspective, in particular with respect to the line of control over the vessel. The legal framework will therefore have to be flexible so as to ensure that the objectives of the various regulations are protected, regardless of how the vessel is controlled and operated.
The introduction of the unmanned vessel and the general digitalization of shipping, also begs the question of whether some of the institutions in maritime law, such as the role of the flag state, are appropriate for meeting the new risks and challenges.
The global refining and shipping industries will be hit by the new low-sulfur requirements for marine bunker fuels, set to enter into force five years earlier than many expected.
According to a new analysis from IHS Markit, the two industries are set to experience rapid change and significant cost and operational impacts, as they must comply with the new regulations by January 2020, as confirmed recently by the International Maritime Organization (IMO).
"While the IMO is taking positive action to address the environmental impacts of air pollution from ships, the rapid change creates significant disruption for both the refining and shipping industries," Kurt Barrow, vice president of downstream research at IHS Markit, said.
"The two industries are vastly unprepared," Sandeep Sayal, senior director of refining and marketing research at IHS Markit, said.
"Neither has made the necessary investments for compliance, which means that the 2020 implementation date will result in a scramble. Both industries are taking a wait-and-see approach until firm signals are in place by the IMO for compliance with the regulation," Sayal added.
Shippers will have several options to meet the new IMO regulations, IHS Markit said. Low-sulfur bunker fuels, primarily for smaller vessels, and liquefied natural gas (LNG), primarily for new builds, will be part of the solution.
However, IHS Markit researchers expect that on-board ship scrubbers, devices that clear harmful pollutants from exhaust gas, will be the primary compliance path for ships, which could continue to burn higher-sulfur fuels.
As ship owners respond to the large-scrubber investment incentives, high-sulfur bunker fuel demand will rebound, although not to prior 2020 levels. Due to increasing demand and addition of debottlenecking capacity for residue conversion, IHS Markit estimates price spreads will moderate within a few years, "but the timing of price recovery will be dependent upon a number of variables."
Tanker Owners need to understand the risks and raise safety standards. As ship recycling standards have increased across the sub continent, tanker owners need to adapt to the stricter requirements for cleaning vessels for hot works prior recycling.
As we have seen earlier this year, tragic accidents aboard vessels that were not cleaned thoroughly led to a tragic loss of life and closure of the Pakistani market for over 8 months now.
This should serve as a serious wake up call to tanker owners that their vessels must be totally cleaned of all
cargo residues, slops and sludges in all cargo and slop tanks in order to mitigate risks of an accident at recycling yards.
Regrettably, we have noticed a few ship-owners are shying away from such an important and fundamental responsibility. This is a dangerous precedent that must stop immediately. All in the shipping community need to sleep sound at night knowing that they have acted responsibly. Every effort should be made to prevent a repeat of the awful accidents witnessed in Pakistan that led to loss of life, enforced closure of recycling markets, created negative publicity, reduced (financially beneficial) resale options, which ultimately resulted in lowering prices for all wet units across the board.
After working closely with recycling yards, ship managers, gas freeing professionals and ship owners, GMS has developed the industry’s first guidelines for cleaning tankers for hot works prior delivery to recycling yards. These guidelines go above and beyond the routine requirements of gas freeing.
We request owners to go the extra mile so that lives can be saved and safety standards further enhanced across a rapidly developing ship recycling sector. GMS has adopted a policy that ALL tankers purchased by our principals on “as is where is” basis will be cleaned according to these guidelines.