1. The broken baggage train
2. The science of memory
3. Flexitanks
4. Navigational safety
5. Crisis financing
6. Named party liability
7. Life at sea
8. MEPC
9. World energy outlook
10. Mission award winners
11. Safe handling of MEG cargoes
Notices & Miscellany
Readers’ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com
1. The broken baggage train
By Michael Grey
It was the Duke of Marlborough, unarguably one of the most successful exponents of warfare, who attributed his triumphs on the battlefield to his mastery of what today we term logistics. In an age when armies fed themselves off the land over which they marched, John Churchill ensured that his baggage train, with all the stores required to maintain his men in the field, was readily available and regularly replenished. It was a lesson that other great military captains took to heart.
You can have the best armed and most sophisticated equipment available, but if the “baggage train” is neglected, you end up very embarrassed. This historical analogy came to mind recently, when, for the first time in its long and distinguished existence, the crews of the UK Royal Fleet Auxiliary took industrial action and went on strike. And while poor pay and conditions are at the root of the dispute, it has come at the end of a long period that has seen this important civilian accessory to the Royal Navy arguably neglected. The result, highlighted by the industrial action, has seen a crisis in recruitment and retention which has seen ships laid up inactive, because of a shortage of the skills necessary to take them to sea.
At a time of global instability such as has not been seen for decades, it is a sorry business indeed. It is not something that has happened suddenly, as the two unions maintain that their pay has signally failed to keep up with inflation and has now fallen more than 30% astern of reasonable expectations. And while the long period of neglect can be attributed to the previous government, the incoming administration has failed to recognise the problem, while rushing to reward other, more visible, public-sector workers such as train drivers and junior doctors.
The morale in this particular merchant service, not for the first time, is suffering. It is all a great shame, because the RFA had a proud reputation as still offering a worthwhile maritime career to UK citizens, who were faced with a shrinking choice as other employers recruited in what we term the “world market.” Highly integrated with the RN, it offers enormous interest in a wide variety of ship types, doing challenging work. But a good career should not be at the expense of poor wages and conditions and successive governments have failed to recognise the growing discontent, despite the obvious signs of poor retention. This failure to nurture a vital service is mirrored in the RN itself, which is suffering the same problems, with a current generation apparently unattracted to life in the Senior Service, along with difficulties in retaining specialist skills.
The current review of the defences (which some have suggested is just putting off difficult financial decisions) will do little to remedy immediate concerns on grey painted ships, both civilian and military. It may be just a curious coincidence in the way governments regard important but less visible services that the same sort of crisis is facing the far larger Military Sealift Command of the United States. Ships, which ought to be at sea accompanying the fleet, are tied up in port for a lack of staff, with retention becoming a major problem.
According to a very revelatory interview in the UK’s Nautilus Telegraph, in the case of the MSC it is not so much pay but the inordinately lengthy tour lengths which are discouraging both officers and ratings from remaining in the service, which, like the RFA, is civilian manned. This obviously has sown the seeds of a far greater crisis, as the shortages have meant that people have had to remain afloat for far longer, just to keep their ships operational. Family life has suffered accordingly, as has morale, with more people leaving for good, just as soon as they are able. The lesson seems to be that while the fighting efficiency as seen by the public of the US Navy seems terrifyingly great, it depends entirely on the less glamorous and largely invisible auxiliary service that feed, fuel and re-arm this vital arm of defence. The baggage train should never be neglected.
Michael Grey is former editor of Lloyd’s List
2. The science of memory
Brian Perrott and Patrick Knox of Holman Fenwick Willan have been discussing the science of memory and its reliability in the latest edition of London Calling: entitled ‘The science of memory: just how reliable is it? ‘
A recent English High Court decision* related to what turned out to be the dying days of Monarch Airlines, highlights some important points on what may influence memory.
The case concerned a claim of fraudulent misrepresentation related to the airlines’s funding arrangements, and involved what the judge referred to as a “clash of recollection” of what was said in a key in-person meeting some 8 years before the trial, requiring her to decide between the accounts of “two equally patently honest and truthful witnesses”.
How could two such witnesses have such polar opposite recollections?
In fairness to the two witnesses, each acknowledged that their “unrefreshed” memories were either non-existent or unreliable. So, each was relying on documentation prepared at the time – so contemporaneously – in order to refresh those memories.
This documentation included what amounted to “scripts” or agendas prepared by each side in advance of the meeting for their own use, and a note prepared by one side shortly after the meeting.
An earlier case had held that “the best approach for a judge to adopt … is … to place little if any reliance at all on witnesses’ recollections of what was said in meetings and conversations, and to base factual findings on inferences drawn from the documentary evidence and known or probable facts”.
This didn’t mean that oral evidence was worthless, as it provided an opportunity to subject documentary records to critical scrutiny. But it did serve to caution against any conclusion that, just because a witness appeared honest, their recollection would necessarily be accurate.
The present case also noted a lecture given by another High Court judge entitled “Judging Truth from Memory”.
The lecture had highlighted the fallibility of the “coding” of events in the memory – both at the time they occur, and later (and often for different reasons) when efforts are made to recall these. In part this could result from a natural human tendency to want to portray our participation in events in a way that paints us in the best light – something that could cause our memories to fill in gaps in recollection by reference to what we liked to think we or others would have said or done, rather than what we or others actually said or did.
All of this led the judge to conclude that the principal contemporaneous record – the note prepared shortly after the meeting which appeared to suggest that a fraudulent misrepresentation had been made, was – entirely innocently – inaccurate.
In deciding that the claim therefore failed, the judge accepted the account of another “honest and truthful” witness – interestingly a witness that the judge nevertheless colourfully portrayed as someone who “would be capable of telling a good lie in the context of his business dealings, if he felt one was really required”. Presumably though, not on this occasion!
* Jaffe and Anor v Greybull and Ors [2024] EWHC 2534 (Comm
3. Flexitanks
The International Union of Marine Insurance (IUMI) has published a best practice guide for the safe use of flexible tanks for the transport of liquid cargoes. Its objective is to provide underwriters, brokers and their clients with practical guidance to ensure cargoes transported by flexible tanks arrive intact at their chosen destination.
Flexible tanks – or flexitanks – are poly film bladders that are filled with a liquid cargo (such as dairy products, wine, fruit juice or non-dangerous oils) and then placed into a standard IOS container for transportation.
Explaining the issue, Lars Lange, Secretary General of IUMI said:
“The use of flexitanks has grown significantly in recent years mainly due to reduced transportation costs when compared with a tank container. But this method, if not correctly managed, is easily prone to damage. And once a flexitank is ruptured a total cargo loss usually occurs. This impacts not only on the insurer, the cargo owner and carrier but there is a very real risk of third-party and possible environmental impact as well.”
The paper outlines a range of potential risks including poor stowage, incorrect installation, overloading, material deficiencies, transport issues and others. It goes on to highlight the potential impact which might include additional costs incurred over and above the loss of the cargo and consequential damage such as ESG or third-party issues.
Recommendations for safe use and carriage are contained within the main paper and its three detailed annexes. They include:
• selection of flexitanks and containers,
• container preparation,
• installation,
• transportation,
• emergency preparedness.
Checklists covering selection, preparation, installation and loading are also included.
Lars Lange concludes: “One of IUMI’s central roles is to gather and share knowledge amongst the international marine insurance community to enhance the safety and efficiency of seaborne trade. These guidelines focus on a specific issue that, in our view, will benefit from a change to current practices so that liquid cargoes transported by flexitanks remain safe and free from damage. My thanks go to IUMI’s Loss Prevention Committee and our Professional Partner Battermann & Tillery for compiling such a comprehensive document.”
IUMI’s “Flexible Tanks for Liquid Bulk Cargo: Recommended Best Practice” paper together with the three annexes are available to download from https://iumi.com/opinions/position-papers
4. Navigational safety
Scheduled to run for three years, the OCEAN project (the Operator-Centred Enhancement of Awareness in Navigation) is entering its final phase having already published a number of downloads, presentations and free training videos that are already making an impact on the navigational safety of vessels. The project is funded by the European Union and UKRI and comprises members from seven European Countries: Norway; Greece; Spain; Denmark; Portugal; Ireland; and the UK.
By taking a holistic approach to navigational safety which encompasses training, the usability of technology, processes and procedures, human centred design and commercial pressures, the project hopes to identify factors that can influence outcomes but also shed light on actions that can be practically implemented to improve navigational and situational awareness.
Furthermore, the project seeks to address issues that go beyond collisions and grounding of vessels and investigate and research ways to mitigate whale strikes and track lost and floating containers.
A key element of the OCEAN Project’s work is the development of the European Navigational Hazard Infrastructure which brings together hazard data from all streams, into a single entity to facilitate easier access to information for navigators. The OCEAN Project has developed an app, currently in beta testing, which will allow all seafarers to add sightings of whales or containers into a database. This will allow hazard information to be shared throughout the maritime community at close to real-time. The project is also open to exchanging data with similar initiatives to further enhance navigational safety.
As it moves into its final year, the OCEAN Project can look back on what has already been achieved while wrapping up its research and implementing its planned initiatives. Meanwhile the project welcomes dialogue and feedback from stakeholders throughout the maritime sector – more information can be found on the OCEAN Project website, https://ocean-navigation-awareness.eu/ , and also in a recent article published in the Comité International Radio-Maritime (CIRM) magazine, Spotlight. https://ocean-navigation-awareness.eu/wp-content/uploads/2024/10/Ocean-Project-article-from-CIRM-Spotlight-June-2024.pdf
5. Crisis financing
Just 1.1% of total crisis financing from international development donors was arranged in advance in 2022, according to the latest data, and remains concentrated in wealthier regions.
Despite the limited availability of pre-arranged financing, and the fact that it remains concentrated in wealthier regions, the Centre for Disaster Protection’s second annual benchmark report: The State of Pre-arranged Financing for Disasters 2024, reveals signs of progress.
The Centre for Disaster Protection’s annual report published recently, is a unique source of data and analysis on the level of effort of international development donors to support a shift towards arranging financing for disasters, before shocks happen, in low- and middle-income countries.
The report includes data from the Global Shield Secretariat and the Centre’s own research on levels of coverage – that is, the potential financing in place that could be triggered if specified disasters occurred. The report also presents analysis on notable advances in the pre-arranged finance (PAF) toolkit and on the wider policy and operating environment.
6. Named party liability
Brian Perrott and Colin Chen have recently discussed liability issues in London Calling: Named Party Liable Not More.
A recent Court case* highlights the importance of drawing up letters of indemnity (LOIs) carefully.
The claimant owners had faced misdelivery claims and sought indemnification under three LOIs signed in the name of the first defendant (charterers), who had also been the counterparty to the relevant charterparties. In circumstances where charterers had become insolvent, owners’ claims were premised on charterers allegedly acting as agent for at least one of the other four defendants acting as liable undisclosed principals to the LOIs.
The Court concluded that owners had failed to establish any good arguable case that the other defendants were in fact principals to the LOIs. The result was effectively that the Court did not have jurisdiction over those defendants. This conclusion followed comprehensive analysis of the evidence. Broadly speaking and amongst other things:
• Charterers were incorporated to insulate wider group business from chartering risks.
• The second defendant was not a party to the charterparties, not able to request discharge in the absence of bills of lading, nor obliged to issue any LOI. Notwithstanding that Charterers asked the second defendant for approval before issuing the LOIs, the reason for this was that the goods represented security for payment – when those goods were discharged, that security would be lost.
• The charterparties were entered into before Charterers knew whose cargoes would be shipped. Further, Charterers would use space available on chartered vessels for third parties other than the third to fifth defendants.
This case serves as an important reminder that the recipient of a proposed LOI should ensure that the issuer is solvent and capable of honouring the indemnity. If there is any doubt over the issuer’s financial standing, the recipient should insist, for example, on a reputable bank countersignature. Signatories’ authority to sign, and the location of assets, should also be considered. Establishing, or seeking to establish, a particular entity’s liability under an LOI may well be more straightforward where that entity is named in (and/or has signed) the LOI.
* Yangtze Navigation (Asia) Co Limited and another v TPT Shipping Limited and others [2024] EWHC 2371 (Comm).
7. Life at sea
Many seafarers still fear the stigma of speaking openly about their struggles while working at sea, so shipping needs to keep crew mental health and wellbeing high-up on its agenda, a leading global maritime charity has urged.
Stella Maris’ Life at Sea Report 2024 was launched on World Mental Health Day. This year’s edition focuses on the importance of mental health in the maritime industry and the role played by hundreds of Stella Maris chaplains and volunteers around the globe to support the mental wellbeing of seafarers.
“Seafarers are tough, they have to be. Being part of a small crew is inherently challenging. The work is relentless, and emotions such as loneliness, fear and boredom are difficult to endure,” said Stella Maris CEO and National Director Tim Hill.
“But it can be hard for seafarers to talk about their worries. The fear of being judged or lowering morale among crew often keeps them silent. When seafarers are concerned about their families, they can feel powerless and isolated,” he added.
“At Stella Maris, we believe that face-to-face interaction makes a huge difference. A friend in port. A listening ear. A welcoming smile. When you ask seafarers about life at sea, they often say they miss the feeling of being connected. Human connection is what Stella Maris chaplains provide in their tens of thousands of ship visits each year.
And when crisis strikes, the value and impact of our chaplains’ support is even greater, providing a unique service to the world’s seafarers wherever they are.” he explained.
As with previous years, the Report features excellent case studies of how Stella Maris’ support has provided a lifeline for many seafarers caught up in crises. It includes examples of Ukrainian seafarers anxious about their future and that of their families, seafarers worried about sailing through the current conflict zones of the Red Sea and the Black Sea, a case of a seafarer in emotional distress after being arrested, and a crew under enormous financial strain after not being paid for weeks.
The Report also highlights how Stella Maris’ partnership with the shipping industry including P&I Clubs, shipping companies and other welfare agencies, has been vital in helping to address and solve crews’ concerns.
“One of the most important things the industry can invest in is making sure seafarers continue to get caring, compassionate human contact,” says clinical psychologist Charles Watkins, who is featured in the Report.
“Stella Maris has chaplains around the world, in all cultures, and they have a really good feeling for culture and what that means for mental and physical health. These small things – going on board, chatting to crews, asking about their families – they are not small at all. They are huge. I’ve been on board vessels with Stella Maris chaplains and have seen for myself. This is significant, impactful work,” he added.
Download Stella Maris’ 2024 Life At Sea Report here https://stellamaris.org.uk/wp-content/uploads/2024/10/2024-Life-at-Sea-A4-Landscape-web.pdf
8. MEPC
The Marine Environment Protection Committee (MEPC), 82nd session, met in-person at IMO Headquarters in London (with hybrid participation) from 30 September to 4 October.
MEPC 82 discussed a range of environmental matters, including proposed mid-term measures for the reduction of greenhouse gas (GHG) emissions from ships, enhancing energy efficiency of shipping, tackling marine litter, ballast water management and underwater noise reduction.
MEPC 82 highlights:
- Tackling climate change – cutting GHG emissions from ships
- Energy efficiency of ships
- Designation of new Emission Control Areas
- Designation of new Particularly Sensitive Sea Area
- Ballast water management
- Addressing marine litter
- Air pollution prevention
- Underwater radiated noise from commercial shipping
- Pollution prevention and response
- Ship recycling.
For more details see the IMO website.
9. World energy outlook
World Energy Outlook 2024 shows critical choices facing governments and consumers as a period of more ample supplies nears and surging electricity demand reshapes energy security.
Regional conflicts and geopolitical strains are highlighting significant fragilities in today’s global energy system, making clear the need for stronger policies and greater investments to accelerate and expand the transition to cleaner and more secure technologies, according to the IEA’s new World Energy Outlook 2024.
The latest edition of the World Energy Outlook (WEO), the most authoritative global source of energy analysis and projections, examines how shifting market trends, evolving geopolitical uncertainties, emerging technologies, advancing clean energy transitions and growing climate change impacts are all changing what it means to have secure energy systems. In particular, the new report underscores that today’s geopolitical tensions and fragmentation are creating major risks both for energy security and for global action on reducing greenhouse gas emissions.
The report’s projections based on today’s policy settings indicate that the world is set to enter a new energy market context in the coming years, marked by continued geopolitical hazards but also by a relatively abundant supply of multiple fuels and technologies. This includes an overhang of oil and liquefied natural gas (LNG) supply coming into view during the second half of the 2020s, alongside a large surfeit of manufacturing capacity for some key clean energy technologies, notably solar PV and batteries.
“In the second half of this decade, the prospect of more ample – or even surplus – supplies of oil and natural gas, depending on how geopolitical tensions evolve, would move us into a very different energy world from the one we have experienced in recent years during the global energy crisis,” said IEA Executive Director Fatih Birol. “It implies downward pressure on prices, providing some relief for consumers that have been hit hard by price spikes. The breathing space from fuel price pressures can provide policymakers with room to focus on stepping up investments in clean energy transitions and removing inefficient fossil fuel subsidies. This means government policies and consumer choices will have huge consequences for the future of the energy sector and for tackling climate change.”
Based on today’s policy settings, the report finds that low-emissions sources are set to generate more than half of the world’s electricity before 2030 – and demand for all three fossil fuels – coal, oil and gas – is still projected to peak by the end of the decade. Clean energy is entering the energy system at an unprecedented rate, but deployment is far from uniform across technologies and markets.
In this context, the WEO-2024 also shows that the contours of a new, more electrified energy system are coming into focus as global electricity demand soars. Electricity use has grown at twice the pace of overall energy demand over the last decade, with two-thirds of the global increase in electricity demand over the last ten years coming from China.
“In previous World Energy Outlooks, the IEA made it clear that the future of the global energy system is electric – and now it is visible to everyone,” said Dr Birol. “In energy history, we’ve witnessed the Age of Coal and the Age of Oil – and we’re now moving at speed into the Age of Electricity, which will define the global energy system going forward and increasingly be based on clean sources of electricity.”
“As with many other global energy trends today, China is a major part of what is happening,” Dr Birol added. “Whether it’s investment, fossil fuel demand, electricity consumption, deployment of renewables, the market for EVs, or clean technology manufacturing, we are now in a world where almost every energy story is essentially a China story. Just one example: China’s solar expansion is now proceeding at such a rate that, by the early 2030s – less than ten years from now – China’s solar power generation alone could exceed the total electricity demand of the United States today.”
Global electricity demand growth is set to accelerate further in the years ahead, adding the equivalent of Japanese demand to global electricity use each year in a scenario based on today’s policy settings – and rising even more quickly in scenarios that meet national and global goals for achieving net zero emissions.
For clean energy to continue growing at pace, much greater investment in new energy systems, especially in electricity grids and energy storage, are necessary. Today, for every dollar spent on renewable power, 60 cents are spent on grids and storage, highlighting how essential supporting infrastructure is not keeping pace with clean energy transitions. Secure decarbonisation of the electricity sector requires investment in grids and storage to increase even more quickly than clean generation, and the investment ratio to rebalance to 1:1. Many power systems are currently vulnerable to an increase in extreme weather events, putting a premium on efforts to bolster their resilience and digital security.
Despite growing momentum behind clean energy transitions, the world is still a long way from a trajectory aligned with its net zero goals. Decisions by governments, investors and consumers too often entrench the flaws in today’s energy system, rather than pushing it towards a cleaner and safer path, the report finds. Reflecting the uncertainties in the current energy world, the WEO-2024 includes sensitivity analysis for the speed at which renewables and electric mobility might grow, how fast demand for LNG might rise, and how heatwaves, efficiency policies and the rise of artificial intelligence (AI) might affect electricity demand going forward.
Based on today’s policy settings, global carbon dioxide emissions are set to peak imminently, but the absence of a sharp decline after that means the world is on course for a rise of 2.4 °C in global average temperatures by the end of the century, well above the Paris Agreement goal of limiting global warming to 1.5 °C. The report underlines the inextricable links between risks of energy security and climate change. In many areas of the world, extreme weather events, intensified by decades of high emissions, are already posing profound challenges for the secure and reliable operation of energy systems, including increasingly severe heatwaves, droughts, floods and storms.
A new energy system needs to be built to last, the WEO-2024 emphasises, one that prioritises security, resilience and flexibility, and ensures that benefits of the new energy economy are shared and inclusive. In some regions of the world, high financing costs and project risks are limiting the spread of cost-competitive clean energy technologies to where they are needed most. This is especially the case in developing economies where these technologies can deliver the biggest returns for sustainable development and emissions reductions. Lack of access to energy remains the most fundamental inequity in today’s energy system, with 750 million people – predominantly in sub-Saharan Africa – without access to electricity and over 2 billion without clean cooking fuels.
To address the evolving energy challenges faced by countries around the world, the IEA is convening an International Summit on the Future of Energy Security in the second quarter of 2025. Hosted by the UK government in London, the Summit will assess the existing and emerging risks facing the global energy system, focusing on solutions and opportunities. And to explore the implications of AI for the energy sector, the IEA will host a Global Conference on Energy & AI at its headquarters in Paris on 4 and 5 December. High-level participants will discuss how pioneering AI technologies can change the way the world produces, consumes and distributes energy.
10. Mission award winners
The Mission to Seafarers has announced its international Seafarers Awards 2024 winners. This year’s awards ceremony, held on 11 October 2024 at the Fairmont Singapore Hotel, Singapore once again highlighted the vital role of seafarers and those dedicated to improving their welfare.
This year’s Awards ceremony marked the inaugural event for the Mission’s new Secretary General, Dr. Peter Rouch.
Congratulations to the winners of the Seafarers Awards Singapore 2024:
Seafarer Award – The seafarer who has made a significant contribution to welfare at sea.
• Winner: Captain Reda Elnadoury, Oldendorff Carriers
• Highly Commended: Mahdi Pakzad, Researcher & Senior Marine Engineer Officer, Islamic Republic of Iran Shipping Lines (IRISL) Group
Shore-based Award – The shore-based person who has made a significant contribution to seafarers’ welfare.
• Winner: Revd. Un Tay, Principal Chaplain, The Mission to Seafarers – Sydney, Australia
Cadet Award – The Cadet or Trainee who has made a significant contribution to seafarers’ welfare at sea or ashore.
• Winner: Christalove Agyin-Ayetse, Apprentice Deck Officer, Hafnia
• Highly Commended: Denvergil Morin, Deck Cadet, Saltgate Shipmanagement
Innovation Award – The company that has embraced a new programme, project, or training which has enhanced seafarers’ welfare.
• Winner: Bigyellowfish
Rescue Award – The Captain or Crew who has coordinated a successful rescue operation to save lives at sea.
• Winner: Captain Deepak Sharma, Master of MV True Confidence, Fleet Management Limited
• Highly Commended: The Crew of the Hafnia Petrel – Hafnia
Secretary General Award – The person or company who has shown sustained efforts to improve seafarers’ welfare at sea or ashore.
• Co-Winner: Captain Belal Ahmed, Chairman of the International Maritime Employers Council (IMEC) and Managing Director at Western Shipping Pte Ltd, and
• Co-Winner: Peter Lye, Executive Head of Marketing – Shipping & Safety, Anglo American Shipping Pte Ltd
Jan Webber, Director of Development at The Mission to Seafarers, said: “This year’s Seafarers Awards highlight the profound dedication and remarkable achievements of those who tirelessly support seafarers’ welfare. The diverse and impactful contributions of our winners underscore the importance of ongoing efforts to address the evolving challenges faced by seafarers. We extend our heartfelt congratulations to all the winners and commend everyone who has been nominated. We also thank the Sponsors and supporting companies who support this event.”
For more information and to view images from the Seafarers Awards Singapore 2024, please visit here.
11. Safe handling of MEG cargoes
Britannia P&I Club has been looking at the safe handling of mono ethylene glycol (MEG) cargoes. The surge in demand for MEG across multiple sectors, spanning from automotive, textile to pharmaceuticals or cosmetics, has seen a proportional rise in off-spec cargo claims. It is widely used as an ingredient for production of polyethylene terephthalate (PET) resins, fibres, films or antifreeze and coolants. This article aims to highlight the importance of understanding the intricacies of MEG and some of the safety considerations for its transportation.
CARGO OVERVIEW
For reference and as background to understanding the cargo, it is important to know that MEG is a high specification and particularly sensitive cargo. MEG is a chemically hydrophilic substance, meaning it can easily form hydrogen bonds with solvents such as water or alcohol, it also has a low freezing point. Typically, it is synthesised by reacting ethylene oxide with water and the product is practically colourless, odourless and sweet tasting with a syrupy appearance.
Therefore, the production process poses a unique challenge due to the formation of impurities such as aldehydes (by-products), which are inherently difficult to separate from MEG. Factors like production process instability or failure in process control can contribute to the presence of aldehydes, specifically formaldehyde or acetaldehyde, in MEG.
QUALITY VULNERABILITY
Like many other chemical cargoes, the quality of MEG cargo is susceptible to external factors such as presence of water, ultraviolet transmission (UVT), and chloride contamination. Any compromise in these aspects can significantly reduce the cargo’s value, so it is essential to take precautions to ensure safe transport. MEG cargoes may require strict exclusion of water, which in turn, requires tank cleanliness to a very high-purity standard. This protocol helps to prevent contamination by residual organic and inorganic substances within the ship’s containment system, i.e., tanks, pumps, heating equipment, and pipelines. Consequently, a wall-wash survey before loading and sampling the initial “first-foot” cargo is important.
After prolonged intervals between MEG loading at the terminal, the loading arm or hoses may sometimes be exposed to inclement weather, i.e., rain or sun etc and these lines should be flushed before loading starts. Consequently, it would be a common practice to request for manifold samples to be tested before opening up to nominated cargo tanks to ensure the cargo quality conforms to the agreed specification as per voyage instructions. The first foot sample should be tested to ensure the results are also in satisfactory condition. However, this may involve suspending the cargo operation which should be agreed amicably between all parties of interest.
Furthermore, extended exposure of MEG to the air for a prolonged period during transportation tends to deteriorate the cargo quality when dissolved oxygen reacts with the cargo in a process called oxidation (by both thermal and catalytic means). During this oxidation process, MEG reacts with oxygen or other oxidising agents to produce aldehydes (e.g., glycol aldehyde, glyoxal, formaldehyde, acetaldehyde) and the corresponding acids. Therefore, it may be advisable to carry out nitrogen padding in ship’s cargo tanks after loading (particularly for long voyages). The process of nitrogen padding for cargo tanks containing MEG is common to prevent or at least, avoid any further deterioration of the cargo during voyage and most charterers/shippers will require these additional steps to preserve the quality of the cargo.
In some cases, off-spec issues with MEG can be attributed to the ship not receiving proper guidance or voyage instructions from shippers and/or charterers including the handling and nitrogen padding requirements. When a owner’s ship does not have this type of facility onboard, then they may seek alternative arrangement with the shippers/ charterers to address this concern and/or shore supply from the terminal.
Notices & Miscellany
Trending topics
Registration for the AKD Trending Topics seminar on 5 November 2024 in Rotterdam is still open until 25 October 2024. During this seminar, current legal developments in the field of terminals and logistics will be discussed.
Programme
Damage or loss during transportation – by Jorian Gunst
‘Fake carriers’ and ‘fake buyers’ cause significant challenges for all parties involved in the logistics chain. The involvement of freight forwarders, freight exchange platforms and the refusal of cover by insurers have further complicated the position of both cargo interests and carriers. The potential risks, contractual solutions and practical tips and tricks will be discussed.
Navigating EUDR due diligence obligations; mitigating liability threats and enhancing compliance for logistics service providers – by Michael Hajdasinski
The European Union Deforestation Regulation (EUDR), effective from 29 June 2023, represents a major change in global value chains for commodities like coffee, cocoa, palm oil, cattle, rubber, soy, and wood, along with products made from them, such as chocolate, leather, tires, and furniture. During the seminar the main obligations, as well as the potential liability threats will be discussed.
Terminal operator’s liability– by Barbara Wilbrink
We will discuss various issues regarding the liability position of terminal operators towards its customers, as well as towards third parties such as vessel owners. The VRTO conditions were revised in 2023 and shine a new light on terminal liability. We will inform you about the changes.
Women in shipping
Brodies is to host the Women’s International Shipping & Trading Association UK (WISTA UK) panel on Tuesday 29 October 2024, at their office in Edinburgh.
This panel will highlight the critical importance of a swift and coordinated response between all involved parties to ensure crew safety and effectively mitigate pollution and navigational risks.
Moderated by Duncan MacLean, Head of Shipping and Transport at Brodies LLP, speakers include:
- Lisa McAuliffe, Deputy to the Secretary of State’s Representative for Maritime Salvage and Intervention
- Allan Stuart, Associate Director at Waves Group
- Nicky Cariglia, Independent Consultant at Marritima
- Alexandra Couvadelli, Senior Lawyer at Gard UK
- Victoria Anderson, Senior Associate at Brodies LLP
Hedging and damages
The London Shipping Law Centre will be holding an event at Quadrant Chambers in London on November 5 to discuss the topic.
Although issues concerning the relevance of hedges to the assessment of damages arise often in practice, there are few reported cases.
The first instance and Court of Appeal judgments in Rhine Shipping v Vitol have grappled with some of the questions arising and, in particular, the relevance of internal hedging to the assessment of damages.
This seminar will consider whether the Court’s judgments in Rhine Shipping v Vitol provide clear legal guidance or have muddied the waters. From an industry perspective, should internal hedging be treated the same as external hedging and taken into account when determining quantum in commodity or shipping cases involving market movement the price risk of which can be managed by derivatives? If so, should this work both for and against parties?
Specific issues for discussion:
• What is hedging?
• What is internal hedging?
• The state of the law before Rhine Shipping v Vitol
• What was decided in Rhine Shipping v Vitol?
Speakers
Catherine Jago – CJH Experts
Chirag Karia KC – Quadrant Chambers
Paul Toms KC – Quadrant Chambers
Robert Gay – Arbitrator
Time: 6.00pm – 7.30pm
Venue : Quadrant Chambers, 10 Fleet Street, London, EC4Y 1AU
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)
In life there are two things to worry about: either you are well or you are sick.
If you are well then there is nothing to worry about.
But if you are sick there are only two things to worry about: either you get well or you die.
If you get well then there is nothing to worry about.
But if you die there are only two things to worry about: either you will go to heaven or to hell.
If you go to heaven then there is nothing to worry about.
But if you go to hell, you’ll be so damn busy shaking hands with friends you won’t have time to worry.
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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.