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IN THIS ISSUE
1. Voices from the sea
2. Heavy weather alert
3. Conflicting clauses
4. Shadow fleets
5. COP29
6. Trump effect
7. Alternative fuels
8. TT Club departure
9. Fuel EU
10. Maritime Labour Convention
11. Marine cargo claims
Notices & Miscellany
Readers’ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com
1. Voices from the sea
By Michael Grey
Shipping often seems a strange sort of industry. Take the matter of expectations by its employees who crew its ships. On one hand there are those who would only sail aboard nice new ships, where they were afforded free internet connections, good promotion prospects, pension plans and medical insurance. But on other ships, with very different employers, none of these benefits would be available; a substantial proportion would struggle to get paid on time, of even what they are legitimately owed, sometimes with inadequate provisions for food and water, and no expectation of being relieved on time.
You might suggest that the sub-standard, like the poor, have always been with us, but in our supposedly well-regulated and high-tech world of 21st century shipping, it is enlightening to be shown some of the hard facts about what really goes on at sea. This week saw the annual Danica Seafarers’ Survey spell out something of what some 5000 of the seafaring workforce is thinking, its mobility and expectations. It seems from these bare facts that employers are having to pay more to hire and retain good people, who will be increasingly competent at surveying the labour market and willing to move to those employers who will help them realise their ambitions. In many respects, seafarers are no different, in terms of their hopes and expectations, from their shore-side compatriots. The present generation have different concepts of loyalty than their predecessors and are far more mobile; willing and able to search out something better, with a lot more facility through social media to do just that.
Whether we are talking about a ship manager or a second engineer, a technical superintendent or a chief officer, they will be always looking for something better and the employer who wishes to retain them needs to realise this. The best always do, while keeping an eye on the markets and unemployment figures. But some of the welfare concerns highlighted in the Danica survey should worry everyone. The Maritime Labour Convention – the “Third Regulatory Pillar” it was proudly advertised – ought by now to be thoroughly embedded and ingrained in the maritime world. And yet 35% of those surveys returned to Danica suggested that they were not being paid on time. Some 25% commented on issues with food and drinking water. You might suggest that the sort of ships aboard which such conditions apply represent the bottom of the maritime food chain, which just will never be eradicated. The welfare agencies and the inspectors of the ITF are always coming upon these horrors.
These reports however suggest that the sort of regulatory oversights which were put in place by port state control to maintain surveillance over MLC compliance are still inadequate. The reality is probably that, as they always have been, they remain patchy; properly implemented in those ports and countries where you expect them to be implemented, ignored or treated as optional in those ports and countries where, for all sorts of reasons, they are corrupt or plain incapable. As long as these substandard operators remain beneath the radar, trading between substandard ports, they go unremarked; only when they stray into better regulated waters, they hit the headlines. This is, as cynics might observe, the way of the world.
There is nothing this time around in the Danica headlines about shore leave and the lack of it, but it is interesting that the Australian Maritime Safety Agency has recently published a stern reminder that this not an optional extra to be grudgingly conceded. AMSA, which obviously has good reason for this reminder, points out that the Maritime Labour Convention 2006, Regulation 2.4, paragraph 2 specifies that shore leave should be given to crew members “consistent with the operational requirements of their positions,” but should not be based on financial implications. And while it might be pointed out that this provides a certain latitude, the intention seems sufficiently clear.
Mind you, there are plenty of places where they just make it so very difficult, through visa restrictions, practical logistics or simple bloody-mindedness by the port or terminal operators, for anyone to stretch their legs ashore for a few hours. And it cannot be ignored that there are often just so few people aboard a ship and time in port so frenetic and harassing, that shore leave is impractical. But that is another story.
Michael Grey is former editor of Lloyd’s List
2. Heavy weather alert
Extreme weather incidents are increasing across the globe and the impact on cargo ships is evident. Maritime insurance specialist The Swedish Club reports that it registered claims exceeding 25million USD attributable to heavy weather over the past five years.
In response, The Swedish Club has developed a Heavy Weather Alert tool as an addition to its leading loss prevention tool Trade Enabling Loss Prevention (TELP).
Heavy weather can cause structural damage, shifted cargo, broken mooring lines, wet damage, lost cargo overboard, and more. The Club says it has also seen examples where vessels have failed to suspend cargo operations and depart port in a timely manner when severe weather is approaching, resulting in major losses and claims. This is despite the fact that most vessels today have access to high quality weather reporting and weather routing.
The Swedish Club’s innovative Heavy Weather Alert provides timely loss prevention advice to insured vessels operating in proximity to severe weather patterns. Based on a vessel’s position, in combination with up-to-date weather information and real-time data, the Heavy Weather Alert system automatically generates a customised loss prevention alert, with hands-on advice, when severe weather conditions are detected near a vessel’s position – thereby helping to mitigate potential risks and ensuring the safety of both crew and cargo.
The service has been fully developed in-house by The Swedish Club’s Loss Prevention and IT departments, reflecting the Club’s commitment to delivering cutting-edge solutions that support its members in navigating the complexities of maritime operations.
Peter Stålberg, Senior Technical Advisor, commented: “Over the past five years The Swedish Club has registered claims exceeding twenty five million US dollars attributable to heavy weather. Any measures we can take to reduce this figure will contribute positively towards our members’ operations and insurance records.”
The Swedish Club’s TELP service combines the latest technology with its years of claims experience and expertise, including information from external sources, to help vessels safely chart their way through high-risk areas around the globe. By tracking its insured vessels’ AIS signals, the Club is able to identify vessels bound for an area of particular risk and provide them with timely and tailored loss prevention advice relevant to that destination. TELP sends out the advice a few days prior to the vessel’s arrival, or when severe weather is approaching, enabling the crew to plan.
In addition to navigational risks or weather patterns, TELP can advise shipowners and masters of problems with bunkers, pilots or towage, or known issues with unfounded claims or dubious charges. With many thousands of ports and waterways to navigate, often varying from voyage to voyage, it is not easy for a master to be aware of all potential high-risk areas. TELP can issue a warning if any of these ‘hotspots’ could be encountered during what should be an uneventful journey.
Current TELP subscribers will be automatically enrolled in the Heavy Weather Alert service as it is rolled out, ensuring they benefit from this addition without any additional steps required. For further information click here.
3. Conflicting clauses
ITIC (International Transport Intermediaries Club) reports on a shipbroker’s failure to identify conflicting laycan clauses in a voyage charterparty which led to a complex dispute and a US$100,000 claim, which ITIC has reimbursed. The case, highlighted in ITIC’s recent Claims Review, shows the importance of meticulous contract drafting and attention to detail in maritime agreements.
Acting as the sole broker, the shipbroker was instructed by both the charterers and shipowners to include their preferred laycan (lay days and cancelling) clauses in the charterparty. Unfortunately, the broker inserted both clauses into the recap without realising they were contradictory. Neither party noticed the conflict, and the fixture was concluded containing both clauses.
Subsequently, the ship faced delays at the discharge port from its previous voyage, leading the shipowners to anticipate missing the agreed laycan for loading. Invoking their laycan clause, the shipowners proposed a new laycan, which the charterers had a specified time to reject. According to the shipowners’ clause, if the charterers did not reject within this period, acceptance was assumed.
The charterers did not reject the new laycan within the allotted time, which the shipowners interpreted as acceptance. However, upon recognising the delay, the charterers invoked their own laycan clause, allowing them to cancel the charterparty outright. They promptly secured another ship and proceeded with their operations.
Left without cargo, the shipowners were forced to seek alternative employment for their ship. The best available option positioned the ship unfavourably for future cargoes, resulting in alleged financial losses.
The shipowners submitted a claim for US$400,000, representing the losses from the breached charterparty. After negotiations and considering questions about the shipowners’ efforts to mitigate their losses, the claim was reduced to US$100,000. ITIC reimbursed the shipbroker for this amount.
Mark Brattman, Claims Director at ITIC emphasised: “This case underscores the critical need for meticulous attention to contract detail in maritime agreements. Overlooking conflicting laycan clauses led to significant financial consequences for both parties, highlighting the role of precise drafting and thorough review in avoiding costly disputes.”
4. Shadow fleets
The European Transport Workers’ Federation (ETF) has strongly condemned the use of shadow fleets and calls on the European Union and the International Maritime Organization (IMO) for a coordinated European and International response, to take measures, push involved member states in following the cargo, from origin to destination, and implement more stringent controls to ensure that vessels comply with safety, labour, and environmental standards.
“Seafarers should not be unwittingly involved in illegal activities, nor should they be subjected to dangerous work conditions that put their lives at risk,” ETF’s General Secretary Livia Spera stated. “Without a coordinated response from flag states, port authorities, and regulatory bodies, these shadow operations will continue to threaten the safety of our waters and our workers” she added.
The ETF highlights the need for measures including:
Enhanced tracking and transparency requirements, holding flag states accountable for the vessels they register.
Stronger Port State Control inspections to ensure vessels in European waters have valid insurance, adhere to safety regulations and maintain worker protections.
Support for IMO and ILO guidelines on fair treatment of seafarers to protect workers from criminalization in case of an incident or accident involving shadow fleet vessels.
As the ETF continues to press for these reforms, it remains committed to defending seafarers’ rights, advocating for sustainable maritime practices, and working with international bodies to uphold high standards in global shipping. The ETF urges stakeholders across the maritime sector to cooperate and ensure a safe, fair, and environmentally responsible future for seafarers and the communities affected by maritime transport.
5. COP29
Secretary-General Arsenio Dominguez is leading IMO’s delegation to the annual UN Climate Change Conference (COP 29) being held in Baku, Azerbaijan this month.
The 29th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) is bringing together world leaders along with an estimated 40,000 delegates representing governments, civil society and the private sector for discussions on how to address climate change.
In line with the Paris Agreement on Climate Change under the UNFCCC, the global maritime sector has committed to ambitious goals of achieving net-zero greenhouse gas (GHG) emissions from shipping by or around 2050, as outlined in the 2023 IMO Strategy to Reduce GHG Emissions from Ships.
At COP29, Secretary-General Dominguez will share the latest developments in delivering the Strategy, including those related to ongoing negotiations towards a new set of binding economic and technical ‘mid-term GHG reduction measures’ to decarbonize the maritime sector.
COP provides an opportunity to stress the importance of cooperation with the energy and financial sectors as well as with cargo owners, given shipping’s vital role in the world’s energy transition and as the engine of global trade.
Update on IMO’s work to address GHG emissions from ships
Ahead of COP 29, IMO made a submission to the 61st session of the UNFCCC’s Subsidiary Body for Scientific and Technological Advice (SBSTA 61) outlining the progress made and actions taken to date to support maritime climate action.
Among other issues, the paper covers the outcomes achieved at the 82nd session of IMO’s Marine Environment Protection Committee (MEPC 82) held in September/October 2024. At that meeting, the Committee advanced discussions on the proposed mid-term measures for GHG reduction, which include a global pricing mechanism for GHG emissions from ships and a global marine fuel standard. Member States identified areas of convergence and discussions resulted in a draft legal text – the “IMO Net-Zero Framework” – to be used as the basis for the next phase of talks.
The aim is to adopt these mid-term measures in late 2025, with a view to entry into force in 2027.
6. Trump effect
Donald Trump’s victory in the US Presidential Election is ‘a step in the wrong direction’ for international trade as importers fear another spike in ocean container shipping freight rates, according to a report by Xeneta.
Trump has vowed blanket tariffs of up to 20% on all imports into the US and additional tariffs of 60% to 100% on goods from China.
Data from Xeneta – the ocean and air freight intelligence platform – shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.
Peter Sand, Xeneta Chief Analyst, said: “Shipping is a global industry feeding on international trade, so another Trump Presidency is a step in the wrong direction.
“The knee-jerk reaction from US shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.
“If you have warehouse space and the goods to ship, frontloading imports is the simplest way to manage this risk in the short term – but it will bring its own problems. A sudden increase in demand on major trade lanes into the US when ocean supply chains are already under pressure due to disruption in the Red Sea will place upward pressure on freight rates.
“We saw the negative impact of tariffs during Trump’s first term in office in 2018 when ocean container shipping rates spiked 70%. Shippers will be fearing more of the same this time around.
“In the longer term, another Trump presidency will reignite the trade war with China and provoke retaliatory action. In 2018, we saw China respond to US aggression by imposing tariffs of its own, which added even more fuel to the fire, so there is a risk this situation could escalate further in the months and years to come.”
Average spot rates from the Far East to US West Coast and US East Coast have remained relatively flat in the weeks leading up to the US Election, down -3.5% and -2.5% respectively since 15 October.
However, the current average spot rates of USD 5 210 per FEU (40ft container) into the US West Coast and USD 5 820 per FEU into the US East Coast are 167% and 134% higher than 12 months ago, primarily due to the ongoing impact of conflict in the Red Sea.
Sand said: “2024 has been a brutal year for US shippers who have already endured massive disruption due to the Red Sea crisis and spiralling freight rates. There is also the looming threat of further strike action at ports on the US East Coast and Gulf Coast in January next year.
“Another Trump presidency will not be welcomed by US importers and exporters, but they needed a swift and clear result in the election. Uncertainty is toxic for supply chains, so at least the industry now has a clearer understanding of the financial and operational risk and can execute the plans they will have prepared in the event of another Trump presidency.”
7. Alternative fuels
The Nautical Institute recently announced the release of its new training standard for alternative fuels. This standard, available free of charge, underscores the Institute’s commitment to its work as an educational charity dedicated to the safety of seafarers.
As the first milestone in the IMO’s 2023 GHG strategy approaches with the requirement for between 5% and 10% of the world fleet expected to be powered by zero or near-zero GHG emission technologies, many shipowners have had to take a decision on how they will fuel their fleets before all the variables have been fully tested. The result is that one can expect vessels powered by a number of different fuels such as ammonia, methanol and hydrogen to be launching within the next few years before the IMO will be able to establish STCW competency requirements. Although tanker operators have been transporting these fuels as cargo for some time, there is a lack of experience of the procedures needed for their safe bunkering.
Recognising that there will inevitably be a gap between the first of these vessels coming into service and the STCW requirements being implemented, The Nautical Institute has taken the lead to develop guidance that provides an interim framework for trainers and training providers globally. This standard is voluntary and offers broad guidelines that will enable training institutions to create training programmes to meet current needs but leave room for future development as alternative fuels become more established and operational practice evolves.
With a 10-part scheme of work, The Nautical Institute’s Training Standard for Handling Alternative Fuels in the Maritime Sector provides guidance to training providers to offer programmes of learning that ensure seafarers will have the knowledge to handle bunkering of alternative fuels safely and confidently.
Captain John Lloyd , CEO of The Nautical Institute, said, “This standard doesn’t replace the STCW requirements that will be established in the coming years. Rather it seeks to offer interim support that bridges the gap until that time and, having been designed as a living document, it will be able to evolve with industry best practice.
“We have always been dedicated to promoting the highest standards of professionalism, competence, and safety in maritime through the provision of training, sharing knowledge and expertise, and prioritising the safety of working seafarers and we believe that by making available this new standard free of charge throughout the industry, we are adhering to these values.”
The Nautical Institute’s Training Standard for Handling Alternative Fuels in the Maritime Sector can be downloaded here.
8. TT Club departure
TT Club’s well-known advocate for risk mitigation and safety in the freight industry, Peregrine Storrs-Fox has stepped down as the mutual’s Risk Management Director and now takes on a consultancy role to further offer his expertise to TT’s membership and the industry at large.
After 40 years with the international insurance provider during which he started as a claims handler and worked up to global claims director, Storrs-Fox spent the last 22 years developing and enhancing TT’s now much heralded loss prevention function. Valued by those insured by TT as a service proven to assist in ongoing operational risk, the loss prevention work initiated and overseen by him has significantly improved the safety and security of global freight supply chains.
TT Club CEO, Kevin King, said “It is impossible to overstate the significant loss prevention initiatives in which Peregrine has taken a leading role. His risk management knowledge is unique, his research meticulous and his communication skills renowned. Peregrine has been particularly effective in bringing disparate interest groups together to present a united front.”
Tackling the causes of container fires has been one of Peregrine’s more persistent missions; helping all those engaged in the global supply chain to understand and uphold their responsibilities to declare, pack and handle not just hazardous cargoes but also to recognise the potential damage that may be caused by less obviously dangerous materials.
His work on VGM (verified gross mass) in the process leading to IMO regulation, and background analysis of required amendments to IMDG and CTU Codes have been critical in advancing safety in the transport industry. The success of the Club’s Innovation in Safety Award and its associated promotional programme is an example of how his commitment has made a real difference in inspiring new technologies and enhanced procedures to improve the safety of crew, shore workers, cargo, infrastructure and the environment.
“Peregrine will continue to provide his expertise and experience to the industry by fulfilling the role of consultant to TT,” said Mike Yarwood, TT’s MD Loss Prevention. “He has dedicated most of his career to TT’s mission to make the global transport and logistics industry safer, more secure, and more sustainable. I’m delighted that Peregrine is continuing to support our growing loss prevention function.”
9. FuelEU
The regulatory landscape is about to get a whole lot more complicated, with the advent of FuelEU Maritime from 1 January 2025. This ambitious framework, focusing on the ‘well-to-wake’ GHG intensity of vessels trading within Europe, laughs in the face of traditional methods of calculating and tracking emissions, making Excel sheets strictly yesterday’s news, argues NAVTOR’s Director of Performance Jacob Clausen. However, he says, there may be a simple way to voyage to compliance.
According to Clausen, “The easy way to achieve FuelEU Maritime compliance for your fleet is simple.
You don’t do it.
“I’m not suggesting you forget about this incredibly important, though challengingly complex, regulatory framework. That would be damaging – to both the environment, your finances (with stringent penalties) and business reputation. No, rather that you allow an automated system to take the strain, collecting and validating the necessary data, at the optimal quality standard.
“This could work to deliver not only compliance, but also far greater insights into energy consumption and performance, unlocking green benefits and powerful bottom-line advantages.
“But before we get to the solution, let’s assess the challenge. So, what is FuelEU Maritime?
In short, the regulations set strict requirements on the annual average greenhouse gas (GHG) intensity of the energy used by ships trading within the EU and the European Economic Area (EEA). This intensity is measured in grams of CO2 equivalent per megajoule (gCO2e/MJ), considering the full “well-to-wake” emissions pathway – instead of the old EU MRV “tank-to-wake” approach. In this respect it accounts for emissions across the entire lifecycle of the fuel, from extraction, to production, transportation, and usage onboard.
“In addition, there’s a “dynamic” baseline for compliance. The introductory benchmark has been set at 2020’s average well-to-wake intensity, which is 91.16 gCO2e/MJ. However, vessels will have to target a 2% reduction in 2025 (to 89.34 gCO2e/MJ) and aim for a 6% reduction by 2030. It’s an ever-diminishing emissions slope that tapers down to an 80% cut over the benchmark by 2050.
Now, what are the actual implications of this for you?
“Aside from the core strategies your company has to tailor to comply – these will be as individual as your assets and operations – there are a couple of very obvious points to make. Firstly, you need to think about this NOW. Secondly, you need a system way beyond an Excel sheet. And thirdly, you have to get the data right, in terms of both what you collect and its quality. Come up short on any of these points and there will be a (stiff) price to pay.
“Starting at the beginning: Legally, compliance with the regulation comes into force on 30 April 2026, at which point 2025’s figures are digested. That seems like plenty of time… But to understand where your fleet performs in terms of GHG intensity you need insights now. Awareness of today’s operational reality informs the action that you take tomorrow, and the action you take then empowers that all-important compliance. What’s more, FuelEU creates a new strategic impetus with regard to buying energy – with new fuel mixes and shore power, for example, moving up the agenda – so you need to plan a route to compliance. The longer you wait, the less options you have (you cannot buy fuel retrospectively), and that lack of flexibility, as every business knows, can be very, very expensive.
“If you’re lucky enough to have a surplus, it also pays dividends to utilize it – through banking or pooling – and if you’re not you can perhaps borrow to avoid penalties. But, again, to get real business value out of this you have to have a strategy to optimize allowances. And strategic planning, of course, comes back to understanding where you are now.Which you can no longer do with an Excel sheet.
“Spreadsheets have had their place in their sun. Sophisticated businesses, facing complex regulations, simply can’t rely on traditional methodology to comprehend and navigate the multi-dimensional requirements set by FuelEU Maritime (not to mention EU ETS, CII… the list goes on).
“The scale of data and calculations required opens up wide panoramas for missteps, omissions and human error, with each wrong move potentially setting off a ripple capable of growing into a wave of regulatory pain.
“To gauge your path forward, and truly understand your starting point, an approach based on manual inputs, outdated systems and half hearted “box ticking” simply will not Excel.
And this brings us to data – the foundation which compliance is built upon.
Meaning it has to be strong.
“Most importantly of all, you must ensure you collect all the right data.
Calculating GHG intensity across the entire lifecycle of a fuel is truly demanding. There’s a vast array of different criteria that have to be satisfied, with data from a multitude of different sources, that must be fit for purpose. Creating systems, and assigning responsibilities to do that, demands in-depth planning and resource allocation.
“Which is absolutely necessary to get true data quality. Even if you have covered the bases and ticked the boxes, will that data be sufficient when it’s passed over to the verifiers? Or to meet your own detailed planning objectives? And what happens if issues are only discovered when all books are closed, and invoices paid – who foots the bill for compliance then?
“Understanding all the elements of compliance is vital to understanding why you don’t want to get tied up in it.
But why should you when you can let smart shipping take the strain? Advanced digital solutions can take the myriad threads of data needed for FuelEU Maritime and weave them into one simple, satisfying fabric. One you can easily understand and, with that knowledge in place, control.
“Find the right partner and you’ll find approaches that integrate all data within single smart shipping ecosystems and platforms, boasting automated data collection and reporting (no more Excel), backed by in-system validation, with further secondary validation from domain experts for optimal quality control.
Those same experts – available through the best solutions providers – should also be able to take a “consultancy” approach, helping assess the latest industry and regulatory landscape to provide added value to your strategic decision making.
“I’m not suggesting it’s impossible to comply without a third-party digital solution tailored specifically for this task. If you train expert staff, devote resources, further develop IT, and constantly keep up to speed with targets, data and quality control you can do this without assistance.
But I come back to the point of why would you when you can choose a trusted partner to navigate the landscape for you?
“A partner that doesn’t just help enable the compliance you, and all your stakeholders, want to see, but also delivers added value through a greater understanding of your energy use and costs, and how to make more informed fuel and performance decisions fleet-wide.
FuelEU Maritime is complex, and non-compliance carries strict penalties, but it is possible to automate the process and, with smart insights, make it work to your benefit. That can be easy with the right partner onboard.”
10. Maritime Labour Convention
Amendments to the Maritime Labour Convention adopted by the Special Tripartite Committee in June 2022 will enter into force on 23 December 2024. These will help to provide further protection to seafarers, clarify obligations of Member States, and address lessons learned since previous amendments, West P&I says in an Insight.
Regulation 1.4 – Recruitment and Placement
To provide further protection to seafarers, it is now a requirement that prior to or in the process of their engagement they are told of their rights under the system of financial protection established by private recruitment and placement agencies to compensate seafarers for monetary losses.
Regulation 2.5 – Repatriation
There have been occasions where Clubs have sought to repatriate stranded crew but have been prevented by local authorities who refuse to allow crew to leave the vessel as national laws require the presence of seafarers onboard. The MLC has been amended at 2.5.1 para 9 to include a requirement that Member States facilitate prompt repatriation of seafarers.
Seafarers engaged to replace seafarers who had been abandoned shall also be accorded their rights and entitlements under the MLC.
Regulations 3.1 and 4.4 – Accommodation and Recreational Facilities
To improve mental health by ensuring social connectivity, shipowners, so far as is reasonably practicable, must provide seafarers on board their ships with the internet. Charges, if any, must be reasonable. States are to do the same for seafarers on board ships in their ports and anchorages.
Regulation 3.2 – Food and Catering
Good quality drinking water must be available on board, free of charge to seafarers. Meals must also be balanced.
Supplies of food and drinking water will be inspected in relation to their quantity, quality, nutritional value, quality and variety.
Regulation 4.1 – Medical care on board and ashore
In response to issues relating to access to medical care that arose both before and during COVID, wording is now included that requires Member States to ensure that seafarers can access prompt medical care ashore in case of serious injury or disease and are not prevented from disembarking for public health reasons.
Member States are also obliged to facilitate the repatriation (by the shipowner) of the body or ashes of seafarers who have died on board.
Regulation 4.3 – Health and Safety Protection and Accident Prevention
Seafarers must be provided with appropriately sized personal protective equipment. This amendment was agreed in part due to the increasing number of female seafarers.
Deaths of seafarers must be recorded and reported by Member States annually to the ILO, for publication in a global register.
Appendix A2-I(g) and A4-I(g) – Financial Security Provisions
Shipowners have reported issues with some Port State Control Officers (“PSCO”) issuing deficiency notices where the entity named on a vessel’s Declaration of Maritime Labour Compliance (DMLC) was a shipowner and did not match that of the Registered Owner named on MLC financial security Certificates. These alleged deficiencies should not arise due to the existence of an agreement between Member States and the International Group that recognises IG Clubs issue their Certificates to an insured party who is often the Registered Owner rather than the shipowner and naming either entity is valid for the purposes of the MLC.
Currently, in circumstances where a PSCO issues a deficiency notice in error for different entities being named on the DMLC and MLC documents, the International Group and local Correspondents are asked to intervene to remind the PSCO that the Certificates are in fact compliant as there is an existing agreement with the Member States saying so, and request that the alleged deficiency is removed.
An Amendment to Appendix A2-I(g) and A4-I(g) will now formally reiterate the position that already exists in the agreement between the International Group and Member States, making it clear within the Convention to PSCOs that financial security certificates are compliant if issued to either the shipowner or the Registered Owner.
The above amendments will not impact the MLC application process, entities named on Certificates, or the cover that the Club provides.
11. Marine cargo claims
In a recent viewpoint Holman Fenwick Willan considered the issue of marine cargo claims. For the full comment, see the company website.
In the matter of MOK v Argo (judgment handed down by the Commercial Court on 26 July 2024) the Court has considered a number of key issues in relation to a marine cargo claim, including in particular the meaning of damage in the context of mixtures, and certain issues under the Insurance Act 2015 (“IA 2015”). HFW says the judgment leaves open some questions of concern for insureds.
Commenting on the case the law firm explains that although an application for permission to appeal was made in relation to the judgment, it was refused.
“The case contains a number of unsatisfactory conclusions for insureds. This includes the question of the apparent lack of cover until products are blended on the vessel despite purchasing shore tank to shore tank coverage and secondly what constitutes damage in a marine cargo policy in the case of mixtures.
“The reference by the judge to the Bacardi-Martini case to support a finding that there was no damage to a blended product because it had never existed in an undamaged stage is the first within an insurance context. That case relates to very different circumstances: the application of a clause in a supply contract limiting liability in respect of direct physical damage to property and excluding pure financial loss between parties. One party supplied contaminated carbon dioxide to a manufacturer of drinks who mixed it with water and mixture. It was necessary for the resulting drinks to be subsequently recalled and a claim was made against the gas supplier. The Court of Appeal, in holding that it was not that the mixture/water was damaged by the gas, but that a defective product came into existence, was considering the nature of what loss the parties intended to exclude from their contract, not what in law constitutes damage in the context of mixtures.
“This is also the first judgment to consider section 11, which was intended to mitigate what was (under the previous law) insurers’ ability to deny cover for breaches of policy terms which were irrelevant to the loss which had actually occurred. The obiter comments in this judgment indicate that the relevant consideration in applying section 11 is not whether the particular breach of the term which took place could have increased the risk of loss, but whether compliance with the term as a whole could have decreased the risk of loss. The outcome is that if a term is substantially complied with but breached in a minor way that is irrelevant to the circumstances of the particular loss, then s11 still may not assist the insured. It also suggests from an insured’s point of view that it is better to have warranties or conditions precedent broken down into as many separate clauses as possible, rather than combined as one.
“It is hoped that the Courts will address these points further in the future.”
The HFW team was led by Jonathan Bruce and acted for the insured.
Notices & Miscellany
Safety Day
UK Chamber of Shipping ‘Safety Day’ is on December 4 at Watson Farley Williams’ London office.
The Safety Day will mark the fact that the National Maritime Occupational Health and Safety Committee (NMOHSC) has held 100 meetings and provides an opportunity to hear from the new Maritime Minister Mike Kane MP. This event also enables the Chamber to showcase some of the work it is engaged in with the aim of improving safety and will allow members to air their own views on what the Chamber – by itself and in partnership with the trade unions – and the Government can do that would deliver most effectively for the members.
Agenda:
0830-0915 Roundtable with Minister (invitation only)
0845-0925 Registration
0930-1000 Minister’s address
1000-1015 Commemoration of 100th NMOHSC, including launch of Guidelines to Shipping Companies on Shipboard Safety Representatives and Committees
1015-1100 Safety Culture presentation with Mike Bradshaw, Fleet Management Services
1100-1130 Coffee Break
1130-1200 Safety in enclosed spaces presentation and discussion hosted by OCIMF
1200-1300 ‘Together in Safety’ presentation by Dr Grahaeme Henderson OBE
1300 Lunch
BIFA appointments
The British International Freight Association has elected new chairs in three of its six-strong Young Forwarder Network (YFN) regions.
Brooke Flower, EU customs import entry clerk at KWL Logistics becomes the new chair of YFN’s Anglia region; and is joined by Nicole Page, recruitment and HR admin assistant at Unsworth as chair for the London East Region. Harris Hay, key account manager from Cardinal Global Logistics completes the trio of new appointments as the chair of the North West region.
Stella Maris
Leading global maritime charity Stella Maris has revived its port chaplaincy service in the Northwest of England after an absence there of almost 10 years. The charity has appointed Christopher Reynolds as chaplain covering the ports of Liverpool, Fleetwood, Maryport, Whitehaven and Barrow.
BIFA golf
The British International Freight Association’s first corporate golf day for many years raised over £3,000 for the sub-Saharan development charity, Transaid.
A video of the presentation can be viewed via https://www.youtube.com/watch?v=KuLlAQr-9fE
The photo shows (left to right): Carl Hobbis, BIFA member services director presenting a cheque for £3100 to Maddy Matheson, Transaid’s head of fundraising.
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And finally,
(With thanks to Paul Dixon)
Some Tips for the Clueless (learned the hard way)
If you’re bidding on a job for UPS, don’t send your bid by FedEx.
If your computer says, “Printer out of Paper,” this problem cannot be resolved by continuously clicking the “OK” button.
If you want your refrigerator’s ice maker to work, you need to hook it to a water source. Air doesn’t make good ice unless it is mixed with water.
No matter how much data you add to your laptop, it will not get heavier.
It’s okay to use the Polaroid Land Camera on a boat.
When your PC says “You have mail,” don’t go to the company mailroom and look for a package.
If you’re in the armed services and it’s April 1st and you get an e-mail message to call Colonel Sanders for new orders, don’t.
If you go to the computer store to buy a mousepad, you don’t have to specify whether it’s for a Windows or a Mac.
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Maritime Advocate Online is a fortnightly digest of news and views on the maritime industries, with particular reference to legal issues and dispute resolution. It is published to over 20,000 individual subscribers each week and republished within firms and organisations all over the maritime world. It is the largest publication of its kind. We estimate it goes to around 60,000 readers in over 120 countries.
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