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IN THIS ISSUE
1. Seafaring’s false prospectus
2. One liners
3. Crewless ships
4. Nuclear power
5. Dispute resolution
6. Biting the bullet
7. Cold water survival
8. Container losses
9. Buyer beware
10. Seafarer survey
11. Port winners
Notices & Miscellany
Readers’ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com
1. Seafaring’s false prospectus
By Michael Grey
An older generation of seafarers feels left behind, missing important life events that are taking place in their families ashore. The younger ones feel that their lack of contact, isolated on their ships, gives them feelings of desperation. There is also a general belief that they have been lured into their maritime careers by an over-egged portrayal of life at sea, which reality has shown them to be unrealistic. It does not appear to be a happy situation, with its consequences of vanishing lifestyle satisfaction and deteriorating mental health. These were some of the conclusions reached after a survey of Indian seafarers by Mental Health Support Solutions, an organisation whose name provides an explanation of its function. It has taken issue with much of the information available online about seafaring careers, which it describes as one of the downsides of connectivity. Such misleading information, it suggests, leads to disillusion, not least when the lack of connectivity afloat is such an ongoing issue. It might be suggested that Indian seafarers are no different to any other people in this beleaguered but essential profession, and that although much has been complicated by the huge changes in general communication over recent years, the study reflects a perennial problem that comes down through the generations. We are being constantly told that Millennials and Generation Z people, ashore and afloat, will not tolerate what their predecessors put up with, allegedly without demur. But previous generations to these dissatisfied folk also demanded change and a better response from an industry which, to them, seemed to be endemically unwilling to see their collective points of view.
It was in 1972 that JMM Hill of the Tavistock Institute’s Centre for Applied Social Research published the ground-breaking “The Seafaring Career” which was subtitled “A study of the forces affecting joining, serving and leaving the merchant navy”. It was primarily devoted to the UK MN, and the fright the industry had been given by the 1966 strike, but the study was the very first of its type and explored the minds and motivation of seafarers in a way that was quite unique. It also was widely criticised by the shipping establishment, which basically did not like what its employees were saying and resented being told what they ought to be doing to promote recruitment and encourage retention. I found it, like its author, quite inspirational and have treasured my dog-eared copy of this little book (it cost £1.00) down through the decades.
It is, of course a very different maritime world that these current seafarers inhabit from those Hill interviewed in the dying days of the 1960s. But there are many consistencies, in the sense of isolation, the “us and them” of ship and shore attitudes and the growing disillusion as the years at sea drag on. Notable is the way in which the industry is divided, as it always will be, one suspects, into those better employers who are responsive to changing attitudes and those who believe that as long as there are seafarers who can find no alternative employment, they can go on in much the way they always have. I am showing my age, but when Hill was conducting his enquiries there were still tramp owners who expected their crews to sleep on straw “donkey’s breakfasts” and accept water rationing and very basic rations, two- year articles and on old ships, primitive accommodation.
But is there anything about the present situation which is markedly different from that of earlier times? Is the degree of intolerance to the present conditions such that one might ask whether seafaring itself as an occupation requires drastic change if it is to properly man future ships? Certainly, if one looks for guidance ashore, where there is an increasing focus on “work-life balance” and all sorts of pleasures unavailable to previous generations, it is not an encouraging picture as to how the operation of deep-sea ships can be made sufficiently tolerable to attract the talent that is needed. Others have suggested that shorter tours, larger crews, and access to global communication to all, along with better shore leave, are just the start of what the changes might entail.
One might suggest that more strategic thinking about all this is required, bearing mind all the technical and operational changes that will be coming along, with more sophisticated ships. MHSS also suggests that food that is appropriate to the cultural and national requirements of the particular crew is also a prerequisite. That may be something of a struggle if the employer insists on multi-national manning, but wellbeing itself requires familiar food produced by a skilled cook, if one is going to turn-to with a cheerful demeanour. In his book “Sailors and Traders” about the Pacific peoples, Alastair Couper describes a seafarer from Kiribati going off to join a bulk carrier for a one-year contract, noting that he has had the last meal of familiar food for the next twelve months. But at least he seemed to know and understand what he was letting himself in for, and one hopes that he was not disillusioned.
Michael Grey is former editor of Lloyd’s List
2. One liners
Maria Alexandroff, and Brian Perrott of Holman Fenwick Willan have been looking at the issue of one liners and whether they are a binding guarantee in the latest edition of London Calling..
The Commercial Court has held that a one-line sentence that states “to be guaranteed by [company]” in an email recap to a charterparty may be enough to amount to a binding guarantee.
On 30 May 2022, SFL ACE 2 Company Inc (“the Owners”) entered into a charter agreement with Allseas Global Project Logistics Limited (“the Charterers”) for the hire of MV Green Ace (“the Charter”). During negotiations, the parties discussed the provision of a guarantee. In an email recap, the Charterers agreed “to be guaranteed” by Allseas Global Management Limited (“AGML”), who held 50% of the shares in the Charterers.
When the Charterers defaulted on payment, the Owners pursued a claim against AGML under the guarantee. AGML denied liability, arguing primarily that:
a. The contract did not contain a term that AGML would guarantee the Charterers’ performance.
b. Even if such term existed, AGML did not consent to be bound by it.
c. The guarantee was unenforceable as it did not comply with the Statute of Frauds, which requires guarantees to be evidenced in writing.
Decision
The Court held that:
I. The email recap, which included the phrase “to be guaranteed by AGML” was correctly interpreted as a binding promise to guarantee, effective without further agreement or formality.
II. It was undisputed that the person who entered into the Charter [the CFO for a number of Allseas companies, and director of the Charterer], had the authority to enter into a guarantee, if the exchange of recap emails, amounted to a valid guarantee (which it did). Indeed, it was reasonable for the Owners to understand that this was the case and that AGML was agreeing to enter into an immediately binding guarantee.
III. The exchange of emails satisfied the writing requirement under the Statute of Frauds.
Comment
This case highlights that even brief statements can constitute a binding guarantee. As a guarantee is a secondary obligation, it typically mirrors the obligations of the principal in the underlying contract. As such, it is not strictly necessary for the terms of a guarantee to be formalised.
SFL ACE 2 Company Inc. v DCW Management LimCrewited (Formerly Allseas Global Management Limited) [2024] EWHC 1877 (Comm) (“the Green Ace”)
3. Crewless ships
Autonomous ships transporting goods along coastlines, inland waterways, within cities and even perhaps on the high seas. Does that sound like science fiction? A recent forum convened by HPC Hamburg Port Consulting (HPC) as part of its Connecting Ports talk show series discussed in full these very possibilities, and this future seems anything but remote.
Talk show moderator Christina Prieser, Associate Partner at HPC, delved into the future world of water-borne logistics together with three experts: Ørnulf Jan Rødseth, General Manager, Norwegian Forum for Autonomous Ships (NFAS); Marc Holstein, Head of the Remote Operation Center at SEAFAR in Antwerp and Antoon van Collie, CEO of ZULU Associates.
Rødseth opened the debate with evidence that semi-autonomous vessels are already operating on coastal services in Norway. “Since spring 2022, the world’s first semi-autonomous container ship has been transporting mineral fertilizer from the Yara production facility in Porsgrunn to the regional export port in Brevik. The vessel is actually autonomous but still operates with a crew of three and is remotely controlled from a control center,” he reported.
“Seafar technology is currently deployed on over forty vessels mostly inland ships, of which a majority are already operating with reduced crew and are remotely controlled,” remarked Holstein. “Three of these vessels navigate the Rhine between the Netherlands and Bonn. We have been operating crew-reduced and partially automated ships from a control center for four years. The demand is there and the system can be seamlessly integrated into the existing infrastructure and traffic flow, especially in Belgium.”
As far as developments in France are concerned van Collie of ZULU Associates gave a summary, “Since May 2024, the French authorities have issued a decree allowing the operation of autonomous ships in French territorial waters. As a designer of such vessels, we are in close talks with the state waterway authority VNF (Voies Navigables de France) to hopefully operate unmanned or partially unmanned ships by next year,” he said.
The moderator HPC’s Prieser turned to the application of autonomous vessels for distribution and logistics within cities. In New York, the plan is to load pallets into small containers on small inland vessels, which will then transfer the goods to cargo bikes or electric vehicles for the last mile using their onboard cranes. While in Paris two small ZULU inland vessels are already employed for urban logistics. One of these is capable of being fuelled by hydrogen. Van Collie envisions this concept for cities like Hamburg or Berlin as well.
In Norway, by 2026 the food retailer ASKO plans to replace 50 road trailers per day to water using two battery-powered, semi-autonomous ro-ro ships on the Oslo Fjord. “Ro-ro ships have the advantage of requiring minimal infrastructure,” Rødseth told the talk show audience.
Members of the audience were curious about the risk of vessel failures and accidents. Holstein explained that remote control actually increases the levels of operational safety. Eight-hour shifts for captains onshore are significantly less tiring than the 12-14 hour shifts often required on board. Rødseth commented on the easing of crew stress levels through automation eases the crew’s burden of a “tedious 30-day straight course across the Pacific,” for instance.
Connecting Ports #08 is available on YouTube Connecting Ports | Session #8 | Navigating Next: The Path to Autonomous Maritime Transport (youtube.com)
4. Nuclear power
Lloyd’s Register and Core Power have launched a joint regulatory assessment study to conduct research on the regulatory feasibility and frameworks that would need to be established for a nuclear container ship using a fourth-generation reactor noted for its high inherent safety to undertake cargo operations at a port in Europe. Following initial planning, the parties, who are joined by A.P. Moller – Maersk (Maersk), have formalised their collaboration through the signing of a joint development project agreement to undertake the study.
The joint study will investigate the requirements for updated safety rules along with the improved operational and regulatory understanding that is needed for the application of nuclear power in container shipping. In addition, this study will provide insight for members of the maritime value chain who are exploring the business case for nuclear power to help shape their fleet strategy towards achieving net zero greenhouse gas emissions.
The study will bring together the expertise of LR as an adviser to the maritime industry, Core Power’s experience of developing advanced nuclear energy technology for maritime applications, a leading port authority and Maersk’s experience in shipping and logistics.
Nick Brown, CEO, Lloyd’s Register, said: “The initiation of this joint study marks the beginning of an exciting journey towards unlocking the potential of nuclear power in the maritime industry, paving the way for emissions-free operations, more agile service networks and greater efficiency through the supply chain. A multi-fuel pathway to decarbonising the maritime industry is crucial to ensuring we as an industry meet the IMO’s emission reduction targets and nuclear propulsion shows signs of playing a key role in this energy transition.”
Mikal Bøe, CEO, Core Power, added: “There’s no net-zero without nuclear. A critical key to unlocking the vast potential for nuclear energy to transform how the maritime sector is powered, is the standards framework for commercial insurability of floating nuclear power plants and nuclear-powered ships that would operate in nearshore environments, ports, and waterways. We’re immensely pleased to be working with some of Europe’s most respected industry participants to set out the conditions for how this can be achieved.”
Ole Graa Jakobsen, Head of Fleet Technology, A.P. Moller – Maersk commented: “Since Maersk launched its energy transition strategy in 2018, we have continuously explored diverse low emission energy options for our assets. Nuclear power holds a number of challenges related to for example safety, waste management, and regulatory acceptance across regions, and so far, the downsides have clearly outweighed the benefits of the technology. If these challenges can be addressed by development of the new so-called fourth-generation reactor designs, nuclear power could potentially mature into another possible decarbonisation pathway for the logistics industry 10 to 15 years in the future. Therefore, we continue to monitor and assess this technology, along with all other low emission solutions.”
5. Dispute resolution
The Dispute Resolution Statistics of the International Chamber of Commerce (ICC) always make for interesting reading law firm HFW says in a briefing.
The ICC is one of the largest International Arbitration Institutions, therefore its statistics give a good indication of what is happening in that part of the arbitration ecosystem, the law firm says.
Switzerland’s position as a leading centre for International Arbitration and international business was confirmed once more by the ICC’s 2023 Dispute Resolution Statistics:Switzerland as a whole was the third-most common country to host ICC arbitrations.
Swiss law was the second-most common choice of law for the contracts which were submitted to the ICC – in the 2020 statistics, it was the third-most common choice of law;Swiss nationality was the third-most common nationality of the arbitrators – as it was in 2020.
These figures are very much in line with those in previous years, for example, the 2019 statistics and the 2017 statistics. .They show that Swiss law and arbitration remain a very popular choice for parties in international business.
This is not new: a 2014 academic study on the choice of law for international contracts concluded that “[…] English and Swiss laws are, on average, three times more attractive to commercial parties than any other laws.”
The substantial presence of Switzerland and of Swiss law in the context of international business may be surprising, given that Switzerland has a population of less than 9 million people and doesn’t have any colonial heritage.
The choice of Swiss law for international business can be explained by the fact that it is a neutral and codified legal system which allows the parties a very large degree of contractual autonomy, which is enforced. Swiss contract law has not incorporated EU law. Much importance is placed on the wording of a written contract, and how a reasonable person would interpret it. It is generally quite easy to understand and is available in several languages.
For the full story download a PDF version of ‘ICC’s 2023 Statistics Confirm Switzerland as a Premier Arbitration Jurisdiction’
6. Biting the bullet
A new proposal put forward by the shipping industry is urging governments to ‘bite the bullet’ to meet net zero 2050 targets. The International Chamber of Shipping (ICS), working with the governments of Bahamas and Liberia, has presented a comprehensive new proposal to ensure delivery of the ambitious UN International Maritime Organization’s (IMO) target to achieve net zero greenhouse gas (GHG) emissions from international shipping by or around 2050.
At the heart of the proposal is a GHG Fee, charged to ships per tonne of CO2 equivalent (CO2e) emitted, combined with a “feebate” mechanism to incentivise the accelerated production and uptake of zero/near-zero GHG marine fuels, such as green ammonia, hydrogen and methanol, sustainable biofuels, and new technologies such as on-board carbon capture.
While the principal purpose of the proposed maritime GHG pricing mechanism is to narrow the significant cost gap with conventional marine fuels, around US$2.5 billion per year would also be allocated to an “IMO Net Zero Shipping Fund” to support maritime GHG reduction efforts in developing countries. This is to help ensure that shipping’s transition to net zero will be truly global and that green fuels will be available in all ports worldwide.
ICS takes no view on the quantum of what the GHG Fee should be, which would depend on the reward rate agreed per tonne of GHG emissions prevented by the use, by ships, of zero/near-zero GHG energy sources. But if, for the first five years of implementation, IMO sets the reward rate at about US$100 per tonne of CO2 prevented (including upstream emissions), the proposal suggests that a GHG Fee initially equivalent to about US$60 per tonne of conventional fuel oil consumed by ships could be sufficient to achieve the purposes of the measure.
The primary objective of the proposed IMO “mechanism” is to accelerate the production and uptake of new green marine fuels by reducing their cost disadvantage, with feebates (rewards) being disbursed to ships for the CO2e emissions prevented by not using conventional fuel oil. GHG fees will be collected, and feebates disbursed, via a web-based automated IMO “mechanism”, the prototype for which ICS has already developed and submitted to IMO.
From the revenue generated from the GHG fee, an amount equivalent to 20% of the revenue allocated to support the feebate programme will be transferred annually to the newly proposed IMO 2 Net Zero Shipping Fund, with this proportion subject to adjustment within five years of entry to force.
ICS Secretary General, Guy Platten comments: “A GHG pricing mechanism using a flat rate GHG fee and a feebate element will be vital to bring about the rapid development and uptake of green marine fuels. To incentivise the production and use of green marine fuels our proposal includes a carefully thought out feebate mechanism, which is fuel neutral, to incentivise prevention of up to 100 million tonnes of GHG emissions per year during the first five years. This will help de-risk investment decisions and enable shipping to rapidly reach a “take-off” point in the use of green marine fuels, something which is needed urgently as their current availability is virtually zero.”
“It is time for governments to ‘bite the bullet’. Unless a distinct GHG pricing mechanism and feebate programme are included in the IMO regulations adopted next year, we genuinely fear that shipping’s transition to net zero by or around 2050 will be unlikely to succeed.”
The latest proposal from Bahamas, Liberia and ICS, will be discussed at the next round of IMO negotiations, which resume in London on 23 September, to develop a new package of mid-term GHG reduction regulations for international shipping, for adoption by governments in 2025.
The full submission to the IMO is available here.
7. Cold water survival
With possibly less than 15 minutes to rescue somebody immersed in cold water before they become unresponsive, time is of the essence to save life. Understanding how the body reacts when it enters cold water and what can be done to delay damaging effects can increase chances of survival until help arrives, P&I Club Gard says in a viewpoint.
When seafarers hear three prolonged blasts on the vessel’s horn followed by call outs for “Man Overboard!” they immediately know that an emergency has occurred. A crew member or other person has accidentally fallen from the vessel into the sea, or the vessel could be responding to someone else’s emergency, and a quick response is essential.
Analysis conducted by the UK Maritime Accident Investigation Branch (MAIB) has revealed that crew have, on average, less than 11 minutes to recover someone who has fallen overboard into cold water before they become unresponsive. Analysis of 20 incidents that occurred between 2017 and 2021, shows that the time decreases as the water becomes colder or the sea state rougher. In some cases, crew had just 4 or 5 minutes to coordinate a complex recovery under extreme pressure.
Dangers related to man overboard and abandon vessel situations are normally included in emergency preparedness plans and procedures, both for vessels and offshore installations. Dedicated emergency training and drills focus on these types of accidents. However, it is also important to continuously remind each crew member, as part of their training, what to do if they accidentally fall into the water or have to enter the water in an emergency. Individuals with an understanding of how the body reacts to exposure to cold air or water, and who know how to delay the damaging effects of cold stress on the body, will have a much better chance of staying alive. With an increasing number of maritime and offshore-related activities taking place in and near the Arctic and Southern Oceans, it becomes ever more important to focus on these issues.
The IMO has published a Guide for Cold Water Survival (MSC.1/Circ.1185) which is primarily intended for seafarers. The guide highlights the importance of understanding that an individual is not helpless to affect his/her own survival in cold water, particularly if wearing a life jacket.
Maximising the chances of survival in cold water – Gard
8. Container losses
While the volumes of containers lost at sea fluctuates year on year, typically influenced by the more severe of weather conditions, the challenge is persistent. International freight insurer TT Club stands with the container industry in seeking to reduce these losses, the club says.
Understanding the circumstances that lead to stack collapse and losses overboard incidents is, of course, vital in mitigating the risk. TT applauds the World Shipping Council initiative to publish the details of the annual survey into container loss and recognises the lowest level of recorded losses during 2023, including the important fact that around 33% of units initially lost are subsequently recovered.
Nevertheless, TT’s own analysis of historic incidents clearly shows that weather is the single most influential factor. Furthermore, the data demonstrate that this is far more complex a challenge, involving a wide range of interconnected operations.
“In this context TT has been involved from conception with the MARIN TopTier Joint Industry Project,” emphasises TT’s Peregrine Storrs-Fox. “This on-going project has drawn together over forty industry and governmental stakeholders in identifying and resolving the circumstances that lead to such incidents. It has already delivered important guidance relating to mitigating parametric roll risks and the Club will continue to be involved in the debates, particularly at the IMO, following the finalisation of the research.”
While focus is, not wholly unreasonably, mostly on ship operations, TT has long recognised that all participants in the freight supply chain carry responsibility. When the transport order is initially placed the accuracy of the verified gross mass (VGM) is pivotal, as is the correct load distribution and securing when packing cargo into the container. Consequently, TT’s cargo integrity campaign remains central to its work alongside partners in the Cargo Integrity Group.
At the ship/port interface, the terminal operating system (TOS) must support the appropriate stowage on board the ship, alongside stow planning software. These systems need to plan heavier containers lower in any given deck stack. Storrs-Fox comments, “TopTier studies have identified discrepancies of up to 20% between planned stow versus the actual final stow on board. If representative of all operations, this is itself alarming.”
As to environmental factors, TT’s analyses identified potential commonalities across several incidents. Wave height was amongst the more obvious factors, but wave length and period appeared to be of even greater importance. Indeed, it was recognised that wave period is responsible for resonant phenomena, such as parametric roll and synchronous rolling, that can give rise to stow collapses and losses overboard.
Through its Innovation in Safety award, TT has also been searching for developing technological solutions. The two complementary digital and engineering solutions, both developed by Trendsetter Vulcan Offshore (TVO), apply well-established systems from the offshore industry, firstly to enhance monitoring capabilities, predicting and detecting parametric roll, and secondly fundamentally re-imagine lashing systems to reduce container motion and control the dynamics of container stacks.
Conventional wisdom remains that heavy storms should be avoided where possible to minimise the risk of container loss. Re-routing away from the Red Sea this year has exposed many voyages to extreme weather off southern Africa. Nevertheless, deployment of innovative technology can assist in building greater safety margins, including leveraging data capture to improve understanding and predictions of changing sea conditions.
“Ships will never be able to avoid the impact of heavy seas entirely,” concludes Storrs-Fox. “Consequently TT, in furtherance of its mission to make the global logistics industry safer, more secure and more sustainable, continues with its efforts on this issue and urges industry colleagues to do likewise.”
Container seals
TT also warns container seals are being ignored to the detriment of cargo security. Though not a robust deterrent to determined thieves the humble seal plays a central role in identifying location, method and often perpetrators of cargo theft.. TT Club argues for greater emphasis on the container seal as part of a stronger security culture across the supply chain.
Loss due to theft is among the top three causes of claims received on an annual basis by the TT Club. Identification of trends, spikes and hot spots surrounding this aspect of supply chain crime is a primary function of the insurer, as is the issuing of guidance to help mitigate such losses. In the latest of its ongoing series of Security Bulletins, TT focusses on the crucial importance of the container seal, as a fundamental tool in assuring the integrity of global cargo transportation.
Despite the existence of a wide range of security seal types, from basic plastic clips through to the frequently used bolt seals, and now sophisticated digital options, many in the supply chain are ignoring their benefits in maintaining cargo integrity and promptly identifying theft.
Thieves have devised complex strategies, as well as traditional bolt cutters, to access a container’s cargo undetected. These include recruiting insiders and manipulating seal numbers, either manually or using 3D printing so almost identical seals can be affixed once the cargo is stolen.
“Whatever sealing regime is employed its effectiveness crucially depends on how the process is managed,” emphasises TT’s Logistics Risk Manager, Josh Finch. “It is important for supply chain managers to be aware of the limitations of the various seal designs but also to appreciate that whatever seal type is employed, their efficacy hinges on whether the information from the seal is accurately checked. A security culture must pervade operations at both loading and unloading points, as well as other key handling locations.”
Often personnel at the receiving warehouse view the seal as a nuisance, something that needs to be cut from the doors prior to them opening the container and unpacking it. However, identifying any tampering with the seal can be vital insofar as liability is concerned, helping to pinpoint exactly how the theft occurred, who was involved and where goods were damaged or stolen. “Moreover such knowledge clearly acts as guidance in taking steps to avoid future incidents,” comments Finch.
A vital consideration in expanding the use of seals is that almost all are currently either single-use or have an element that is plastic. Clearly, promoting their widespread usage involves consideration of sustainability, especially as the industry focusses increasingly on environmental, social and governance (ESG) issues. Speaking of this limitation, Finch comments “While there are clearly environmental concerns with many container seal solutions, we cannot ignore the societal implications of allowing cargo theft to thrive in the industry. TT sees innovation in all areas of the transport and logistics industry, and we see great potential in digital seals that increasingly appear on the market.”
Gathered together in this Security Bulletin is TT’s own loss prevention advice together with collaborative work undertaken with other like-minded organisations in this space. From basic descriptions of seal specification, performance characteristics and benefits to new e-seal and tracking technology, and from details of criminals’ methodologies to guidance on best practice to combat theft, the Bulletin outlines the crucial role seals should play in operators’ security processes and culture.
It can be accessed free of charge HERE
9. Buyer beware
Lee Forsyth, and Brian Perrott of Holman Fenwick Willan have also commented on the tricky issue of caveat emptor in the London Calling online newsletter.
The Seller sold a vessel to the Buyer under a Memorandum of Agreement (MOA). The MOA contained a cancellation clause which permitted the Buyer to cancel the MOA if a Notice of Readiness (NOR) was not provided by the Cancelling Date. An NOR was not provided by the Cancelling Date and the Buyer terminated the contract.
The key issue was whether the Buyer was entitled to loss of bargain damages following termination.
The court held that:
There was no positive obligation on the Seller, to tender an NOR nor to be ready to deliver by the Cancelling Date, which was capable of giving rise to a breach of contract.
The MOA simply provided a right to cancel if an NOR was not tendered by the Cancelling Date.
The cancelling clause provided that, in certain circumstances, the Seller would have to give “due compensation to the Buyers for their loss and for all expenses…” for failure to give an NOR by the Cancelling Date. However, whilst the Buyer may have been able to claim certain losses (e.g. expenses incurred in preparing for delivery) the court considered that this clause did not give rise to a right to claim loss of bargain damages.
Loss of bargain damages could therefore not be claimed by the Buyer.
Comment
It was open to the parties to agree that the obligation to deliver the vessel by the Cancelling Date was a condition, which would have resulted in loss of bargain damages if breached. The case highlights the importance of considering the consequences of key obligations in the contract.
ORION SHIPPING AND TRADING LTD v GREAT ASIA MARITIME LIMITED [2024] EWHC 2075 (Comm)
10. Seafarer survey
The Maritime Charities Group (MCG) has announced the launch of a major new survey as part of ongoing research on the demographic profile of the UK’s Merchant Navy and fishing fleet.
The newly launched 20-minute survey is aimed at seafarers (UK Nationals only) with responses intended to help shape the future of welfare support offered by national maritime welfare charities. This survey responds to the multitude of challenges faced by the UK’s seafarers, from the cost-of-living crisis and the global pandemic to the impact of wars in the Red and the Black seas, mass redundancies and a crewing crisis.
CLICK HERE TO ACCESS THE SURVEY NOW
It will provide valuable evidence for the UK’s maritime welfare charities, giving fresh insights into the welfare needs of UK seafarers and their dependents. It will help them tailor existing services such as ship visiting and other port-based welfare services, pastoral support, retirement accommodation, helplines and advice on housing and welfare benefits for the next generation.
The survey gives UK nationals an unprecedented opportunity to have their voices heard on a range of issues at sea, in port, and at home. By taking part, seafarers can express their concerns and shape the future of maritime welfare charity services for all in need of extra support and help in times of trouble. It is open for responses from UK working and former seafarers in all non-military sectors of seafaring, their dependents, and providers of maritime welfare services for UK seafarers. Participants are also sought to take part in one-to-one interviews and/or larger focus groups, and all shared information is strictly anonymised and confidential.
The survey, which will be open until 30th September 2024 is a comparable study to that being carried out with the UK’s Royal Navy and Royal Marines by Greenwich Hospital and the Royal Navy and Royal Marines Charity, in partnership with the RAF Benevolent Fund.
Seafarers, their families, and maritime welfare service-providers are invited to click here to have their say now.
11. Port winners
The Baltic Exchange, in collaboration with Xinhua News Agency, announces the release of the 2024 Xinhua-Baltic International Shipping Centre Development Index (ISCDI) Report. This annual report, now in its 11th year, ranks the world’s leading shipping centres based on a comprehensive evaluation of port factors, professional business services, and the general environment.
For the 11th consecutive year, Singapore has been recognised as the world’s leading shipping centre, achieving a score of 96.23 out of 100. The enduring success of the island nation is attributed to Singapore’s strategic location, robust international outlook, and a well-established ecosystem of professional maritime services.
London once again secured second position with a score of 82.50, demonstrating its continued prominence as a maritime support services powerhouse. Shanghai, with a score of 81.84, retained third place, highlighting its significant role as a major port city in Asia. London and Shanghai have retained their positions of second and third place, respectively, within the Index for the past five years.
Hong Kong (79.07) and Dubai (75.64) rounded out the top five, emphasising the strength and importance of these key global shipping hubs. Rotterdam solidified its position as a European leader by maintaining its strong sixth place from 2023 into 2024.
Meanwhile both Athens/Piraeus and Ningbo Zhoushan have climbed one place in the rankings this year, to seventh and eighth, respectively. As a result, Hamburg has dropped two spots to ninth but still maintains its decade-long position in the top 10.
As in 2023, New York/New Jersey rounded out the top 10 owing to a substantial increase in container volumes, as well as improvements in port infrastructure.
Key findings of the 2024 ISCDI Report:
• Top Performers: Singapore, London, and Shanghai continue to lead the rankings, underscoring their global leadership in shipping.
• Stability in Rankings: The top 10 shipping centres have shown little change from the previous year, reflecting the stability and sustained performance of these hubs and the wider maritime industry.
• New Entrant: Tianjin was the only new feature to this year’s list, taking 19th position, marking yet another Asian port in the global rankings.
Other notable rankings include Houston at 11th (68.08), Tokyo at 12th (66.60), and Guangzhou at 13th (65.36). These cities continue to demonstrate robust maritime capabilities and significant contributions to global shipping.
The ISCDI Report evaluates a total of 43 maritime locations, considering various port metrics such as cargo throughput, crane count, container berth length, and port draught. It also assesses the presence of professional maritime support businesses, including shipbroking, ship management, ship financing, insurance, and legal services. Additionally, the evaluation considers general business environment factors like customs tariffs, the level of electronic government services, and overall logistics performance.
According to this year’s ISCDI Report, the average score amongst the top 10 ports is 77.12 out of 100, and 69.98 for the top 20, with the average across the entire 43 rankings standing at 59.13.
Mark Jackson, Chief Executive of the Baltic Exchange, commented: “It has been eleven years since the Baltic Exchange began collaborating with Xinhua News Agency on this Index, and in that time, we have observed significant shifts in global trade patterns. The international shipping industry in 2023 demonstrated remarkable resilience and adaptability, reinforcing its indispensable role as the cornerstone of global trade. Despite facing significant economic slowdowns, geopolitical tensions, and environmental challenges, the sector maintained stability and continued to facilitate the movement of essential goods around the world.
“This year’s rankings highlight the strength of global ports, with Singapore, London, and Shanghai continuing to lead the way, providing world-class services and infrastructure that underpin the industry’s success. The shipping industry will continue to face challenges such as decarbonisation and evolving trade routes. However, its inherent resilience and strategic importance will ensure that it remains a critical driver of global economic growth and stability.”
Notices & Miscellany
WISTA conference
The WISTA conference takes place from the 09 – 11 October 2024 in Limassol, Cyprus, which will convene industry leaders, innovators, and advocates from across the globe to engage in meaningful discussions, share insights, and forge partnerships aimed at advancing collective goals.
Reserve a place here – WISTA2024
Valdes appointment
Michelle Otero Valdes has been elected National Director of the U.S. Federal Bar Association. Ms. Valdes’ post will begin on October 1, 2024.
Dragon boat race
The 9th OSCAR Dragon Boat Race will take place on Friday 13th September 2024 in London. This annual event has already raised over £1.5m towards the total raised by the OSCAR Campaign which now exceeds £2.7m. 25 teams compete against one other and the top six teams battle it out in a final. There is a bar, food, quayside games and activities and music to get everyone in the mood. It’s an excellent networking event which attracts hundreds of people and is great fun. Most importantly, no training is required – just turn up and join in!
If you’re interested in supporting OSCAR in 2024, whether that’s entering a team or sponsoring the event (we have various options available), do let us know.
For more information on the OSCAR Dragon Boat Race contact Phil Parry and
Bethanie-Taylor Grenfell or visit our website.
You can also attend as a Spectator for the event in which you can purchase your tickets now.
Please notify the Editor of your appointments, promotions, new office openings and other important happenings: contactus@themaritimeadvocate.com
And finally,
(With thanks to Paul Dixon)
SYMPTOMS OF SENILITY VIRUS:
1. Causes you to send same e-mail twice.
2. Causes you to send blank e-mail.
3. Causes you to send to wrong person.
4. Causes you to send back to person who sent it to you.
17. Causes you to mis-number paragraphs
5. Causes you to forget to attach the attachment.
6. Causes you to hit “SEND” before you’ve finished the
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