Tag: BIMCO

The out come of Basel Convection While a clear-cut decision on which laws should apply to ships bound for the breaker's yard failed to materialise last month, the tide appears to be turning against the backers of a regime that would snarl shipbreaking in red tape.A meeting in Cartagena, Colombia, of countries signed up to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal had raised expectations it would answer the question of whether the alternative convention on shipbreaking should take precedence over the hazardous-waste treaty if levels of control and enforcement were judged to be equivalent.The European Union, Japan, China and the US were the most significant backers of the Hong Kong Convention on Ship Recycling adopted by the International Maritime Organization (IMO) in 2009, while developing countries, supported by environmental non-governmental organisations, were among those expressing preference for Basel.The outcome, however, was less clear-cut than many would have wished, although some environmental campaigners, who have long argued Basel should apply to ships, interpreted the Delphic statements that emanated from the meeting as a victory.A decision was reached at the meeting on the so-called Ban Amendment to the Basel Convention which, although adopted ...

EU has proposed 0.1% sulphur cap to take effect in 2015 New regulations really need to be thought over carefully and exposed to the most rigorous cost-benefit analysis. It is often said that legislation concocted in haste will be inevitably regretted by its recipients and that those making regulations need always to consider "the Law of Unintended Consequences", which will often catch out those who have allowed their enthusiasm for legislation to get the better of them.Perhaps it has been taking rather too long to build up a head of steam, but the opposition to the proposed EU 0.1% sulphur cap due to take effect in 2015 within the European Emission Control Areas seems to be growing very fast. Ferry and short sea operators in particular have been doing their research and are, as a result, better equipped to forecast the consequences of this drastic reduction of sulphur content in fuel oil, due to become mandatory.Speaking to the UK House of Commons Transport Committee recently, the UK interest group Maritime UK told MPs that the proposals are likely to increase bunker costs by nearly 90% and will almost certainly add some GBP 3.6 billion per annum to the operating costs ...

2011 has been a tumultuous year for shipping By any measure 2011 has been a tumultuous year for shipping. The Arab Spring uprisings are reorienting global geopolitics and bringing the issues of energy security and transport logistics into sharp focus. Meanwhile, the thorny matter of piracy continues to increase not only the financial burdens placed on ship owners and governments but also the amount of time spent considering steps to contain and minimise the threat.However the impact of these developments on the maritime industry is marginal compared to that of the Eurozone sovereign debt crisis. The inability of EU policymakers to come up with a workable means of writing down Greek debt and recapitalising banks exposed to indebted governments has created volatility in the global equity markets, uncertainty in business circles and slowdowns in all the region's economies.Hit by rising levels of taxation, inflation and unemployment, European consumers are finding that their savings are earning "negative" real returns. Furthermore, the Eurozone crisis has become a global problem due to the EU's pre-eminent status as a trading partner. The US and China, the International Monetary Fund's largest shareholders, have a vested interest in helping solve the crisis. All are agreed that ...

Nowdays, it looks similar to the 1970s and 1980s Ship values are causing concern, as those who bought ships when the price was high are now finding that they must face a precipitate decline in the market and book value of these same nearly-new vessels. It is something that is completely predictable, what with the febrile state of the global economy but also a perfectly natural consequence of both the over-optimism that saw so much over-ordering and the effect that this would inevitably have upon ship supply.One does not have to be much of an historian to relate this regrettable coincidence of bad news to the situation in the 1970s and 1980s, when the seeds of the shipping industry's long depression were sown in a similar fashion. Then it was state-supported credit that persuaded owners that they should buy against a new era of perpetual growth. Now it has been everything from short-term demand spikes to the new fashion for public finance that drove the enthusiasm that has so spectacularly backfired since the Autumn of 2008.One can, however, be persuaded by doom-laden headlines in newspapers written by people with little concept of the historical trade cycles that govern shipping and ...

"Slow steaming" is when service speed is lowered but where the vessel can safely steam The Slow Steaming Clause for Time Charter Parties was reviewed when the Working Group met in Copenhagen on 14 October. The Group were joined by a technical expert from engine manufacturer Wärtsilä with the purpose of shedding some light on the advantages and technical challenges that shipowners face when agreeing to slow steam. A solution was found to the technical issues which had been holding up the adoption of the clause.The clause is designed for tankers, dry bulk and container vessels and it introduces a two-tier approach to slow steaming, either "slow steaming" or "ultra slow steaming". "Slow steaming" is when service speed is lowered according to the charterers' request, but where the vessel can safely steam without the use of the vessel's engine auxiliary blowers. According to the advice received from several engine experts all vessels, provided that they have been well-maintained, will be able to lower the speed until this point without requiring modifications or the keeping of extra spares and without suffering damage to the engines and other parts of the vessel."Ultra slow steaming" is when the vessel's service speed is lowered ...

Outline of latest IMO GHG Decisions and Environmental Legislation Flemming Sandstrøm, Senior Marine Technical Officer, BIMCO, is giving a presentation regarding the Outline of latest IMO GHG Decisions and Environmental Legislation, during the 2nd Annual Safety4Sea Forum, Session 2The 2nd Safety4Sea Forum, a PRO BONO event, successfully completed on 5th of October 2011 in Athens, covering a wide range in QHSE issues.The event has been attended by over 340 delegates at the venue representing more than 170 companies, plus more than 100 persons watching live streaming. The event organized by IBS Marine Consulting Group and sponsored by Aspida Maritime Security, Dorian Hellas, Transmar Shipping and Lloyd's Register and supported by BIMCO, Intermanager, SaveOurSeafarers campaign, Steamship Mutual, Green Award, Cardiff University, ELNAVI, NAFTIKA XRONIKA, Tanker Operator, Shipmanagement International and Marintech NewsFor more information about the Forum visithttp://www.safety4sea.com/forum/2For more information about Safety4Sea visit the official site http://www.safety4sea.com

EEDI is mandatory for ships constructed after 1 January 2013 In response to queries from members on application of the calculation methodology contained in the IMO guideline, BIMCO has created the EEDI Calculator.The EEDI Calculator is an implementation of the calculation guideline contained in IMO Circular MEPC.1/Circ.681. The calculation guideline is still being reviewed by MEPC, and BIMCO will issue updated versions of the EEDI Calculator as amendments are published in the future.The EEDI is implemented as a new chapter to MARPOL Annex VI, as it is mandatory for ships constructed after 1 January 2013.EEDI is a certified energy efficiency design index that is required as part of the IAPP Certificate for new ships of certain categories: bulk carriers, gas carriers, tankers, container ships, general cargo ships, refrigerated cargo carriers and combination carriers. Ships of these categories must have an EEDI assigned before entering into service and above certain threshold sizes must have an EEDI below a required value.The EEDI Calculator provides for calculating both a ship's attained EEDI as well as the required EEDI, if applicable.The single most critical value when calculating the attained EEDI is the ship's speed in the index condition. The EEDI Calculator helps calculating the ...

At the 9th meeting of Working Group 2 of the Contact Group on Piracy off the Coast of Somalia BIMCO was represented at the9th meeting of Working Group (WG) 2 of the Contact Group on Piracy off the Coast of Somalia, which took place on 11-12 October. In response to requests to have a Working Group meeting in the region, the meeting took place at the Seychelles. The main focus of the meeting, which gathered around 90 participants from more than 30 countries and a number of international organisations, was to continue exchanging views on the use of privately contracted armed security personnel (PCASP) on commercial vessels and consider legal issues in regard to piracy financiers and leaders operating ashore.Developments since last meeting States and organisations reported on recent developments with regard to national prosecutions of suspected pirates, recent piracy incidents, lessons learned in court cases, efforts to adopt or modify domestic legislation, human rights considerations, co-operation in investigations and bilateral agreements. A number of states (Germany, Japan, India, France, the Netherlands, USA, the Republic of Korea, Belgium, Saudi Arabia, the Seychelles and Kenya) reported on the status of ongoing investigations, trials and appeals, and other activities.A number of challenges ...

IMO Cooperative Mechanism in Malacca Malaysia meeting to boost protection in the area BIMCO is participating at the IMO Cooperative Mechanism in Malacca Malaysia during a week of meetings aimed at improving the safety of navigation and environmental protection in the Straits of Malacca and Singapore.The first of the three meetings was the 4th Cooperation Forum opened by the Director General of Malaysia's Marine Department Y.BHG Dato' Captain Ahmad Othman on 10 October 2011. Captain Othman pointed out that the Cooperation Forum has successfully provided "meaningful opportunities for all interested parties to share their interests towards ensuring the Straits remain safe and open for international navigation."Picture above: BIMCO's Mr. Aron Frank Sørensen, Chief Marine Technical OfficerIn his welcoming address, Malaysia's Minister of Transport, YB Dato' Sri Kong Cho Ha emphasized the importance of Article 43 of United Nations Convention on the Law of the Sea (UNCLOS) as the very basis for which the Cooperative Mechanism was established. "It is vital that all stakeholders embrace the meaning and intent of Article 43 to ensure the sustainability of the straits of Malacca and Singapore", said the Minister, adding that the enhanced collaborative efforts between the littoral States, the User States and the ...

BIMCO's Marine Committee said that it was very satisfied to see IMO adopt EEDI At its recent meeting, BIMCO's Marine Committee said that it was very satisfied to see IMO adopt EEDI technical and operational measures to reduce GHG emissions from ships."EEDI provides both opportunities and challenges for our industry", said BIMCO Marine Committee chairman Philip Embiricos "....opportunities to build and operate more energy-efficient and cost-effective ships and challenges for ship designers and ship builders to excel their naval architectural and engineering skills focusing on efficiency improvements."BIMCO has evaluated the commercial implication of new ships built after 1st January 2013 being granted waivers from the flag state for compliance with the EEDI requirement.As a result, a firm recommendation was made that due to the lifespan of ships and the significant uncertainties in respect of governments' environmental agendas and how these may be applied, members should abstain from building new ships without certified EEDI compliance.Such ships would be compromised in relation to their future secondhand value in the market, potentially restricted in their ability to trade worldwide and be less attractive in the charter market due to their perceived lower efficiency."BIMCO has a duty to provide the best possible information enabling ...