1. RENOS: A Problem Solved or Created?
2. Operation Sentinel
3. Drewry Sees the Growth of Smart Containers
4. New Japanese Emperor has a Serious Interest in Shipping and Transport
5. What Really Happened To MH 370
6. People and Places
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1. RENOS: A Problem Solved or Created?
Martin Hall and David Handley of Clyde & Co .writing on the firm’s Insight web page have written a case note on the Supreme Court’s recently handed down and much anticipated judgment in the long saga of the total loss case RENOS. They note:-
Two issues were before the court to decide. The first issue concerned whether or not all costs incurred in salvage were to be considered as part of the total loss or simply those incurred after the notice of abandonment was served. The second issue was whether those costs incurred as part of SCOPIC correctly fell within salvage costs to be included in a CTL calculation.
In relation to the first issue, the insurers put forward an elaborate argument that the costs of salvage prior to the notice of abandonment being served were already “sunk” and that it was a matter for the assured to elect between abandoning the ship to the insurer or incurring future costs in conclusion of the salvage services. Under this hypothesis, should the ship be abandoned the salvage services incurred up to that point can have provided no benefit to the insurers as they have not prevented the insurers facing a loss. The insurers sought to rely upon a very narrow construction of s.60 of the Marine Insurance Act in support of this argument.
As expected by many commentators, the Court was unpersuaded by that argument. The Court helpfully set out at some length the limited authority on this issue which makes Lord Sumption’s judgment (unsurprisingly) an interesting and informative read. Constructive Total Loss is not its own subset of loss, it is simply a partial loss which is financially equivalent to a total loss and may be treated as partial or total at the discretion of the assured.
The second issue is one that has been of interest to many since the drafting of the SCOPIC (Special Compensation P&I Clause) following the difficulties which arose out of the introduction of environmental duties and compensation under the 1989 Salvage Convention. The Court was asked to determine whether those costs incurred as part of SCOPIC correctly fell within salvage costs to be included in a CTL calculation. When considering this issue it is important to understand the purpose of that clause: SCOPIC introduced a tariff based system of remuneration for salvage services where salvors had conferred a benefit on the environment but the result for property interests was limited; thus their Article 13 remuneration would be limited or non-existent. Drafted in an era where environmental concerns and climate change were only starting to become mainstream concerns, SCOPIC is very much of its time.
In practice, the clause has been used by some salvors as an ‘insurance’ in those cases where the values of the property constrain their remuneration under Article 13 but the services they provide are complex and costly. Even commercial insurers have been turning to versions of the SCOPIC clause when engaging salvage services on commercial tariff rates in place of an LOF / Art 13 type remuneration.
Read the note in full here:-
https://www.clydeco.com/insight/legal-developments
2. Operation Sentinel
Our friends at PL Ferrari have sent us a copy of their market overview to clients:-
Operation Sentinel is a multinational maritime effort, to increase surveillance and security in key waterways in the Middle East to ensure freedom of navigation in light of recent events.The goal of Operation Sentinel is to promote maritime stability, ensure safe passage, and de-escal tensions in international waters throughout the Arabian Gulf, Strait of Hormuz, the Bab el-Mandeb Strait and the Gulf of Oman.
This framework will enable nations to provide escort to their flagged vessels and take advantage of the cooperation of participating nations for coordination and surveillance.
The statement released by U.S. Central Command is provided below:-
U.S. Central Command Statement on Operation Sentinel
U.S. Central Command
TAMPA, Fla., July 19, 2019
U.S. Central Command is developing a multinational maritime effort, Operation Sentinel, to increase surveillance of and security in key waterways in the Middle East to ensure freedom of navigation in light of recent events in the Arabian Gulf region.
The goal of Operation Sentinel is to promote maritime stability, ensure safe passage, and de-escalate tensions in international waters throughout the Arabian Gulf, Strait of Hormuz,the Bab el-Mandeb Strait (BAM) and the Gulf of Oman.
This maritime security framework will enable nations to provide escort to their flagged vesselswhile taking advantage of the cooperation of participating nations for coordination and enhanced maritime domain awareness and surveillance.
While the United States has committed to supporting this initiative, contributions and leadership from regional and international partners will be required to succeed.U.S. officials continue to coordinate with allies and partners in Europe, Asia, and the MiddleEast on the details and capabilities required for Operation Sentinel to enable freedom of
navigation in the region and protect vital shipping lanes.
New joint-industry reporting guidance
BIMCO, ICS, Intertanko and OCIMF have jointly released reporting guidance for vessels transiting the Arabian Gulf (AG), Straits of Hormuz (SoH) and Gulf of Oman (GOO). The guidance provides that to ensure the safety of all vessels and allow navies to afford best protection it is vital:
• Masters register with UKMTO when entering the Indian Ocean VRA (Ref C & D).
• Comply with Flag State Guidance.
• 24-48 hrs in advance – Masters provide transit plans for the SoH and AG to UKMTO
including:
o Time of Entering/Exiting the SoH TSS.
o Outline of Navigation Plan whilst operating in SoH and AG.
o Any constraints or speed restrictions.
o Crew Nationality.
• CSO’s ensure all contact numbers for UKMTO and USNAVCENT NCAGS are correct.
• In the event of any incident or being concerned, Masters should call UKMTO
immediately.
• Masters answer all VHF calls from coalition navies. Ch16 is becoming very busy,
alternative channels will be offered.
• CSOs and Masters prepare, print and have available the correct response if called on VHF.
UKMTO will share information with the navies joining Operation Sentinel.
Reporting Guidance for vessels `transiting the Arabian Gulf (AG), Straits of Hormuz (SoH) and Gulf of Oman (GOO)
Reference:
A. UKMTO Advisory Notice 002/JUL/2029.
B. U.S. Maritime Alert 2019-004A.
C. BMP5.
D. UKHO Security Chart Q6099.
The incidents against tankers transiting Straits of Hormuz on Friday 19 July have been widely reported (Ref A & B).
To ensure the safety of all vessels and allow navies to afford best protection to global trade it is vital:
Useful BMP Contact details:
UKMTO:
Tel: +44 2392 222060
watchkeepers@ukmto.org
USNAVCENT NCAGS
24/7 Watch: +973-1785-0084
CUSNC.NCAGS_BW@me.navy.mil
Additional sources of information:-
Safety & Security and the use of Privately Contracted Armed Security Personnel (PCASP) in Arabian Gulf, Strait of
Hormuz and Gulf of Oman
BMP5: Best Management Practices to Deter Piracy and Enhance Maritime Security in the
Red Sea, Gulf of Aden, Indian Ocean and Arabian Sea.
OCIMF’s Ship Security: Hull Vulnerability Study
NATO ATP2 – NCAGS Guide to Owners, Operators, Masters and Officers Edition A Version 1 Annex D to Chp 4
This guidance should be posted on the bridge for ease of access to watch officers and covered in watch hand overs.”
This item can also be accessed at:-
3. Drewry Sees the Growth of Smart Containers
Martin Dixon has passed us this report on how Smart devices have the potential to radically transform the utility and value of shipping container equipment assets in Drewry’s latest Container Census & Leasing Annual Review & Forecast 2019/20 report.
Smart containers have increased in prominence in a very short space of time and the pace of adoption is expected to accelerate over the next five years. A container becomes “smart” when fitted with a telematics device that provides real-time tracking and monitoring, enabling operators to increase turn time of their container equipment and so utilisation. It also allows beneficial cargo owners (BCOs) to understand the location and status of their cargo so that they can better control their supply chains.
“There are a number of factors driving this market growth, including growing calls for greater transparency and security across transport value chains,” saysd Drewry’s director of research products Martin Dixon. “Meanwhile, in shipping there is a demand to know the location of the container and above all the status of that container and the condition of the cargo inside it.”
Drewry estimates that by the end of 2018, around 2.5% of the global container equipment fleet was fitted with smart technology devices. However, take-up varies considerably by equipment type, with penetration already strong in intermodal and reefer containers but much lower in the dry box sector.
Read more here:-
4. New Japanese Emperor has a Serious Interest in Shipping and Transport
Our Royal corresponent writes in to point out that the new Emperor of Japan has interests very like those of our readership. He writes:-
I thought your Readers would like to know that Japan’s new Emperor Naruhito attended Merton college at Oxford University researching into the history of transporation on the River Thames. He published a paper entitled “The Thames as a Highway: A Study of Navigation and Traffic on the Upper Thames in the Eighteenth Century”.
https://trove.nla.gov.au/work/35639136?q&versionId=44361012
He later published a memoir about his life and experiences at Oxford in “The Thames and I: A Memoir of Two Years at Oxford”.
https://www.kinokuniya.co.jp/f/dsg-02-9781905246069
Also, this is his speech about Japan’s water transport:-
http://www.kunaicho.go.jp/okotoba/02/koen/koen-h18az-mizuforum4th-e.html
[We hope this edition is referred to the Emperor–ed]
5. What Really Happened To MH 370
We have referred admiringly to the writing of William Langewiesche
before. In last month’s Atlantic he gives a master class on how to write
well and with authority on a difficult casualty. According to the Browser
his 10 000 word essay demonstrates:-
The pilot did it. He was depressed. His marriage was in a mess. He
killed his passengers less than an hour into the flight by depressurising
the cabin. He flew on until his plane ran out of fuel, then crashed
it deliberately into the ocean. “It is easy to imagine Zaharie
toward the end, strapped into an ultra-comfortable seat in the cockpit,
inhabiting his cocoon in the glow of familiar instruments, knowing that
there could be no return from what he had done, and feeling no need
to hurry. Around 7am the sun rose over the eastern horizon, to the left.
A few minutes later it lit the ocean far below”
https://cdn.theatlantic.com/assets/media/img/2019/06/10/WEL_MH370_Lead/1920.jpg?1560532518
6. People and Places
The Council of the Singapore Shipping Association (SSA) has made history
by nominating the Association’s first-ever female President since
its founding in 1985.
The Council elected Caroline Yang, Chief Executive of Hong Lam Marine,
as the association’s President. Ms Yang started her career with
Hong Lam Marine as its in-house counsel in 1991, and has more than 25
years’ experience in the shipping industry.
———-
essDOCS, has announced that Mr. Barry Williams has joined the company
as President.
Barry Williams, as Chairman of the Board of Amber Road, a USA based
software company providing cloud-based Global Trade Management solutions,
successfully steered the company to an IPO in 2014 (NYSE: AMBR). In
June 2019, together with CEO Jim Preuninger, he concluded the sale of
Amber Road to E2Open in an all-cash transaction valued at approximately
$425 million.
Before joining Amber Road, Mr. Williams was CEO of P&O Nedlloyd,
leading the merger between P&O and Nedlloyd (making it the world’s
second largest shipping line at the time), and then taking the merged
entity public on the Dutch stock exchange. He was also the founder Director
and initial Chairman of INTTRA, which is now the Ocean Carriers Shipping
industry’s largest neutral network providing documentary production
for over 30,000 active international shippers.
———-
The International Maritime Rescue Federation have elected a new board
of trustees at their Quadrennial General Meeting (QGM) in Vancouver.
The meeting followed on from the 4th World Maritime Rescue Congress,
which brought together maritime search and rescue specialists and equipment
providers from around the globe The new Trustees, who will serve a four
year term, then held an initial meeting to elect a new Board Chair.
The newly elected Trustees are:
Dean Lawrence (Chair) (Coastguard New Zealand); Jorge Diena (ADES Uruguay);
Mohammed Drissi (Ocean Fisheries Department, Morocco); Cia Sjostedt
(Swedish Sea Rescue Society); Nicolaus Stadeler (German Maritime Search
and Rescue Service); James Vaughan (RNLI); Zhang Rongjun (China Rescue
and Salvage)
———
Friends at the Seahorse Club have written in to announce the death
of Ian Martin Jones, who passed away in the early hours of this the
17th of July. Ian had been in the editorial business for almost 50 years,
including a 10-year period in Fleet Street and nearly 30 years editing
publications covering air, sea and multimodal freight logistics.
Ian was presented with the Seahorse Life-Time Achievement Award in
2012 and he will be sadly missed by those members who knew him. He became
editor of Air Cargo Week shortly after its September 1998 launch, having
previously edited Handy Shipping Guide. He remained at his post at ACW
for 666 consecutive issues. He also edited Air Logistics China and Air
Logistics Management.In October 2012, he took on the role of editor
at Heavy Lift and Project Forwarding International magazine, were he
remained until retirement in 2015.
———-
The West of England has announced the appointment of Will Tobin to
head up its offshore business. Will has substantial experience in the
offshore sector and until recently held a similar position at another
International Group Club.
The Avo Archive
The website of this newsletter contains all the editorial material
since the inception of the Maritime Advocate as a print based quarterly
in 1997 under the founding aegis of John Guy, Chris Hewer and Manfred
Arnold. Readers can go to the site and search the database on the home
page in its entirety. If you are looking for an old case, an old controversy
or you would just like to see how many times you and your firm have
featured in our annals feel free to access the archive. It is like this
e-zine, free to Readers and we always appreciate the support of advertisers
and sponsors.
Work is underway to lodge the Archive within a new site for this publication.
Major Minor Irritations
You have to try on a pair of sunglasses with that stupid little plastic
thing in the middle of them.
The person behind you in the supermarket runs his cart into the back
of your ankle.
The elevator stops on every floor and nobody gets on.
There’s always a car riding your tail when you’re slowing down to find
an address.
You open a can of soup and the lid falls in.
It’s bad enough that you step in dog ordure, but you don’t realize
it till you walk across your living room rug.
The tiny red string on the Band-Aid wrapper never works for you.
There’s a dog in the neighborhood that barks at EVERYTHING.
You can never put anything back in a box the way it came.
Three hours and three meetings after lunch you look in the mirror and
discover a piece of parsley stuck to your front tooth.
You drink from a soda can into which someone has extinguished a cigarette.
You slice your tongue licking an envelope.
Your tire gauge lets out half the air while you’re trying to get a
reading.
A station comes in brilliantly when you’re standing near the radio
but buzzes, drifts and spits every time you move away.
There are always one or two ice cubes that won’t pop out of the tray
You wash a garment with a tissue in the pocket and your entire laundry
comes out covered with lint.
The car behind you blasts its horn because you let a pedestrian finish
crossing.
A piece of foil candy wrapper makes electrical contact with your filling.
You set the alarm on your digital clock for 7pm instead of 7am.
The radio station doesn’t tell you who sang that song.
You rub on hand cream and can’t turn the bathroom doorknob to get out.
People behind you on a supermarket line dash ahead of you to a counter
just opening up.
Your glasses slide off your ears when you perspire.
You can’t look up the correct spelling of a word in the dictionary
because you don’t know how to spell it.
You have to inform five different sales people in the same store that
you’re just browsing.
You had that pen in your hand only a second ago and now you can’t find
it.
You reach under the table to pick something off the floor and smash
your head on the way up.
Tommy Cooperisms
1. Phone answering machine message – “…If you want to buy marijuana,
press the hash key…”
2. A guy walks into the psychiatrist wearing only Clingfilm for shorts.
The shrink says, “Well, I can clearly see you’re nuts.”
3. I went to buy some camouflage trousers the other day but I couldn’t
find any.
4. I went to the butchers the other day and I bet him 50 quid that
he couldn’t reach the meat off the top shelf. He said, “No, the
steaks are too high.”
5. My friend drowned in a bowl of muesli. A strong currant pulled him
in.
6. A man came round in hospital after a serious accident. He shouted,
“Doctor, doctor, I can’t feel my legs!” The doctor replied,
“I know you can’t, I’ve cut your arms off”.
7. I went to a seafood disco last week…and pulled a mussel.
8. Two Eskimos sitting in a kayak were chilly. They lit a fire in the
craft, it sank, proving once and for all that you can’t have your kayak
and heat it too.
9. Our ice cream man was found lying on the floor of his van covered
with hundreds and thousands. Police say that he topped himself.
10. Man goes to the doctor, with a strawberry growing out of his head.
Doc says “I’ll give you some cream to put on it.”
11. “Doc I can’t stop singing The Green, Green Grass of Home.”
“That sounds like Tom Jones syndrome.”
“Is it common?”
“It’s not unusual.”
12. A man takes his Rottweiler to the vet.
“My dog’s cross-eyed, is there anything you can do for him?”
“Well,” says the vet, “let’s have a look at him”
So he picks the dog up and examines his eyes, then checks his teeth.
Finally, he says, “I’m going to have to put him down.”
“What? Because he’s cross-eyed?”
“No, because he’s really heavy”
13. Guy goes into the doctor’s.
“Doc, I’ve got a cricket ball stuck up my backside.”
“How’s that?”
“Don’t YOU start.”
14. Two elephants walk off a cliff…boom, boom!
15. What do you call a fish with no eyes? A fsh.
16. So I was getting into my car, and this bloke says to me “Can
you give me a lift?” I said “Sure, you look great, the world’s
your oyster, go for it.’
17. Apparently, 1 in 5 people in the world are Chinese. There are 5
people in my family, so it must be one of them. It’s either my mum or
my dad. Or my older brother Colin. Or my younger brother Ho-Cha-Chu.
But I think it’s Colin.
18. Two fat blokes in a pub, one says to the other “Your round.”
The other one says “So are you, you fat bast**d!”
19. Police arrested two kids yesterday, one was drinking battery acid,
the other was eating fireworks. They charged one and let the other one
off.
20. “You know, somebody actually complimented me on my driving
today. They left a little note on the windscreen. It said ‘Parking Fine.’
So that was nice.”
21. A man walked into the doctors, he said, “I’ve hurt my arm
in several places” The doctor said, “Well don’t go there any
more”
[Paul Dixon]
Thanks for Reading the Maritime Advocate online
Maritime Advocate Online is a weekly digest of news and views on the
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