The Maritime Advocate–Issue 889

Posted:

1. Lost in space
2. Inclinometers
3. Swire move
4. Time bars
5. Slavery risks
6. Ballast water inspections
7. Climate dilemma
8. Xeneta insights
9. Bunker business
10. Sellers’ losses
11. Arbitration proceedings

Notices & Miscellany

Readers’ responses to our articles are very welcome and, where suitable, will be reproduced. Write to: contactus@themaritimeadvocate.com


1. Lost in space

By Michael Grey

What do we do if it all goes pear-shaped? It was a family discussion on our dependence on data, the apparent demand for data-centres to be erected all over the country, and our growing vulnerability, with everything increasingly residing in the Cloud. Satisfactory reassurance to all these concerns, were not forthcoming. One member of our family operates in a large transport organisation, where, he pointed out, they suffer hundreds, if not thousands, of cyberattacks each day.

So, what happens, one wonders, if these villains; either residing in hostile states or in squalid teenage bedrooms, get lucky and bring the whole of modern society crashing about our ears? Imagine the Cloud, as on a prolonged sunny day, just evaporating. It is all about resilience, people who know about this shadowy world, tell us, in addition to paying a king’s ransom in counter measures, both in sophisticated cyber-security, and in protecting the busy undersea channels of communication, which a few dragged anchors have shown to be so vulnerable.

The uninitiated, like this writer, just hope for the best, but it is not difficult to imagine a scenario in which all our data disappears, and all the electronic systems which drive our lives, grind to a halt and go dark. Some serious recent attacks would seem to be a worrying portent. The conversation then became rather less serious and more specific. If GPS disappears and Google Earth is no longer available, how will we know where to go? Whereas an older generation prided themselves on a knowledge of geography, those whose study of this subject has been more “social” than physical, really do not have much of a clue without a SatNav to hand. Just test this theory with younger relatives, or better still, note the hopelessness of elite brains on “University Challenge” if there is any question of a geographical nature. Even a map, or the wonders of the Ordnance Survey, become somewhat problematical, if there is no mobile available.

Does the Institute of Chartered Shipbrokers still value the importance of geography in its professional examinations? They used to be very hot about knowing where the various ports were situated on the surface of the world, for a very good reason, one might think, and invaluable if one’s voyage estimate was not to be a work of fiction. Every decent shipping office and the chartrooms of their ships would have available their volumes of Steamship Passages of the World, the Admiralty Pilots and various guides to port entry. Fascinating reading, they were too. Maybe we should be dusting them off in these hazardous times, as we harden up our defences. It is, you might think, quite useful to know where a port is, before you set sail to it.

I was conscious of my own inadequacies just the other day reading the latest issue of that useful little periodical “Coastal Shipping.” One of its most interesting features is its detailing of small ship voyages to and from the ports of the British Isles, with the cargoes each ship was carrying, in or out. The sheer variety of these cargoes is itself a tribute to the utility of this fleet of small ships and in every issue, there is at least one notation that makes one wonder. A cargo of “plum slate aggregates” out of a small Welsh port was one recent treasure, while the picture of 1550 tonnes of equestrian sand from a port I had never heard of in Holland into Mistley was another.

The astonishing variety of the flags under which these largely European traders are registered is another issue entirely, a consequence of the low margins available to anyone running short sea ships. And for anyone with a pride in geographical knowledge, the ports these little ships trade between represents a stern test. You might be able to put your finger on Llanduddulas or Flixborough, Duisburg or Pasages, but Glaerum, Lilla Edit or Porsgrunn? And if your electronic assistant is not available, your navigation would be even more of a mystery voyage.

Finally, it is worth repeating the indignation of the editor of that excellent education when he pinpoints ports which are being put at risk by greedy developers and parsimonious local authorities who fail to live up to their roles as custodians of these important items of national infrastructure. The Perth & Kinross Council has been trying to shut the Scottish Perth Harbour for ages, with their latest trick now restricting the size of a commercial vessel to one that would be uneconomic. And on the Medway, there are also proposed closures in train. There have been rather too many of these closures over the years, at a time when we ought to be nurturing these useful little transport hubs, even if we don’t know where they are.

Michael Grey is former editor of Lloyd’s List.

 


 


2. Inclinometers

Class society Lloyd’s Register reports that in order  to enhance seafarer safety and prevent the loss and damage of bulk cargo due to strong movements at sea, the IMO is introducing amendments to SOLAS Chapter V. Through Resolution MSC.532(107), it has adopted a new requirement (SOLAS Reg. V/19.2.12) that mandates the carriage of electronic inclinometers for new container ships and bulk carriers of 3,000gt and above. This will enable the Voyage Data Recorder (VDR) to determine, display and record the ship’s roll motion and provide critical information about operational stability. The regulations come into force on 1 January 2026.  The amendments apply to new container ships and bulk carriers of 3,000gt and above constructed (keel laid) on or after 1 January 2026. It does not apply to existing bulk carriers and container ships, nor to cargo ships occasionally carrying cargo in bulk and general cargo ships carrying containers on deck.



3.  Swire move

Achilles, a global leader in supply chain risk management solutions, has signed an agreement to bring Swire Shipping, a leading shipping company in Asia -Pacific, into the Achilles Maritime Network.

This latest addition to the collaborative industry initiative brings the total number of vessels in the programme to over 2,200 as maritime players continue to engage with sustainable and responsible business practices.

The agreement covers the operations of Swire Shipping’s 27 owned container and multipurpose vessels operating 12 liner services connecting over 400 ports via an extensive network of services in the Asia-Pacific and globally. Its fleet provides a wide range of customer solutions for containerised, project, heavy lift, breakbulk and mini-bulk cargoes.

With suppliers based across Asia-Pacific including some emerging maritime regions, Swire recognises the benefits that accrue from supplier engagement in building transparency. Its procurement function and sustainability team will benefit directly from the Achilles database of prequalified suppliers.

Swire seeks to work with suppliers who not only comply with laws and regulations but go beyond the standards expected of an industry leader. The company prioritises working with suppliers who share its commitment to honesty and integrity and who seek to integrate principles of sustainability into all areas of their business.

Julia Ivanova, Head of Procurement at Swire Shipping said: “At Swire Shipping, we strongly believe in the imperative of acting with integrity and accountability to achieve our long-term objectives. The opportunity to make the procurement process more efficient while increasing transparency helps us to demonstrate our credentials in internal and external reporting.”

Craig Rodgerson, CEO Achilles, said: “We are delighted to welcome Swire Shipping as a partner within the Achilles Maritime Network and look forward to supporting them with the tools, insights and support they need to meet the requirements from customers, investors, employees and broader society and an ever-evolving regulatory landscape. The addition of Swire Shipping is a clear demonstration of how much the network is growing beyond the first movers to more companies who value integrity and sustainability in their supply chains.”



4.  Time bars

Brian Perrott & Lee Forsyth, Partner & Senior Associate at HFW have been looking at the issue of time bars under the Hague Visby Rules in the firm’s on-line newsletter London Calling..

The court recently clarified what a “suit” is for the purpose of the time bar under Article III,6 of the Hague Visby Rules (HVR) in relation to claims under bills of lading (BOL).

Cargo was discharged from the relevant vessel in September 2019. No arbitration was commenced initially but on 18 August 2020 the Holders of the BOL issued proceedings in Singapore for the arrest of a sister ship. Arbitration proceedings were later commenced in December 2020, more than a year after the alleged misdelivery of the cargo.

Owners argued that the Holders’ claim was time-barred pursuant to Article III,6 of the HVR which provides that:

“The carrier and the ship shall in any event be discharged from all liability whatsoever in respect of the goods, unless suit is brought within one year of their delivery or of the date when they should have been delivered.”

The Holders argued that the Singaporean proceedings were sufficient to prevent the claim being time barred.

Decision

The Commercial Court held that the Singaporean proceedings were for security and that a determination on the merits of the Holders’ claim for misdelivery would (absent further agreement) require arbitration.

The Court commented as follows:

““suit” for the purposes of Article III, 6 means proceedings that can decide the claim…if time is to stop running it is substantive proceedings that are required, that is, proceedings to establish liability.”

Comment

The case highlights the importance of commencing proceedings within time. Commencing arbitration is normally a simple process and is often (at least at the commencement stage) inexpensive.

Batavia Eximp & Contracting (S) Pte Ltd v Pedregal Maritime SA (The Taikoo Brilliance) [2025] EWHC 1878 (Comm)


 

 

5.  Slavery risks

Marine insurers are being called upon to widen their understanding of modern slavery and forced labour across the maritime and extended global supply chains as scrutiny intensifies from regulators, investors, and clients.

In a new Information Paper, published recently by the International Union of Marine Insurance (IUMI), the growing reputational and legal risks facing insurers that underwrite operations linked to exploitative labour practices is highlighted. While insurers are not directly involved in operational abuses, they may be indirectly and unwittingly enabling unethical practices if due diligence is lacking.
“Modern slavery is impacting an estimated 28 million people”, said Lars Lange, IUMI Secretary General. “Marine insurers must be aware of the potential consequences of insuring unethical clients and consider integrating ethical underwriting practices to support responsible business.”

The paper reports that modern slavery – including forced labour, human trafficking, and exploitative recruitment – affects a range of industries that have links with marine insurance, from fishing and shipping to textiles, agriculture, and manufacturing. Sectors such as distant-water fishing, garment production and the maritime industry/seafaring are identified as particularly high-risk.

Key recommendations for marine insurers include:
•    Conducting robust due diligence during underwriting processes.
•    Implementing clear ESG policies that address human rights.
•    Collaborating with all stakeholders to improve transparency in maritime supply chains.

Recent cases, including lawsuits against major seafood and agriculture companies, underscore the growing legal exposure for businesses complicit in forced labour. Legislative measures such as the EU Corporate Sustainability Due Diligence Directive and the UK Modern Slavery Act are increasingly holding companies—and their financiers—accountable.
Sadly, the maritime sector is an ongoing victim where seafarer abandonment and denial of shore leave are on the rise, with the International Maritime Organization (IMO) reporting a record number of abandonment cases in 2024.

“Insurers are one step removed from these operations and it is important to acknowledge that they often face practical limitations in detecting these abuses given their indirect role and the complexity of global supply chains”, said Lars Lange. “However, as far as possible, marine insurers should take a proactive stance – not just to protect reputations, but also to align the insurance industry with global human rights standards.”

With ESG expectations mounting, marine insurers are encouraged to engage in industry-wide discussions and strengthen their frameworks to prevent complicity in modern slavery.
IUMI thanks its ESG Working Group for compiling the paper which is available to download from https://iumi.com/category/position-papers/


6. Ballast water inspections

With port state control authorities increasing inspections relating to ballast water management, operators need to ensure that all their activities are in order.

From September 1 to November 30 2025, port state control authorities covered by the Paris and Tokyo MOUs will be conducting a campaign targeting ballast water management to ensure compliance with the BWM Convention. Gard P&I has written an insight piece on the issues which can be found on the club’s website at https://gard.no/insights/ballast-water-management-on-the-psc-agenda/.

 



7.   Climate dilemma

According to the recent London School of Economics report ‘Global Trends in Climate Change Litigation: 2025 snapshot’, at least 226 new climate-washing cases were filed in 2024. Experts in energy management stress that companies need to prove that they cut emissions on their own sites instead of offsetting them elsewhere in the world.

Corporate Accountability’s report, released this summer, warned of rising risks for companies that depend solely on carbon offsets to support their sustainability claims, including the risk of court challenges over misleading claims, and growing financial and reputational damage tied to climate-related litigation.

In the report, analysts examined 43 of the largest offset projects in the voluntary carbon market, and most were ‘unlikely to deliver the climate benefits promised.’ Last year alone, researchers claimed that 47.7 million credits were ‘problematic,’ meaning that they won’t deliver real emission cuts, and were taken out of circulation.

Each carbon credit equals one ton of CO₂ reduced or removed, becoming an offset once purchased and retired.

According to Exergio, an energy optimization company that develops AI-based tools for commercial buildings, it represents a growing climate-washing rate, where companies ‘pretend that their assets are green, yet continue to pollute local communities.’

“Buying questionable credits for projects halfway around the world doesn’t make your building in London, Paris, or Vilnius any cleaner,” said Donatas Karčiauskas, CEO of Exergio. “Offsets don’t lower your local emissions or improve air quality. And they won’t protect you from legal scrutiny. Real reductions need to happen where your pollution happens.”

A similar image is portrayed in a recent report by the London School of Economics and Political Sciences. It shows that the disparity between climate claims and actual results causes many companies to land in court. The report also shows a positive trend – claimants indeed win a high share of those climate-washing cases.

In 2024, 20% of cases targeted companies or their executives, with defendants ranging from financial institutions to consumer brands. It is a change from the past trend, where oil companies once dominated such litigation.

Additionally, 80% were strategic cases that tried to change government policy or company practices. Many sought to force stronger climate rules or hold companies accountable for misleading environmental claims.

“For asset owners, the message is clear – cut emissions on-site or be ready to justify every tonne you claim to reduce,” added Karčiauskas. “A little isn’t enough anymore in sustainability, and if businesses claim that their assets are green, they’ll have to be ready to provide concrete steps, such as installing efficient heating and cooling systems or redesigning production processes.”

This focus on tangible, local impact is especially relevant for the buildings sector, one that is responsible for the highest percentage of emissions, Karčiauskas notes.

He adds that offsets have never addressed the constant problems in commercial properties, such as outdated HVAC systems, wasted energy from static controls, or the comfort and health of occupants.
“If you decide to offset your carbon credits, these issues remain untouched, no matter how many credits you buy. Court decisions and raising awareness on climate-washing showcase that major companies won’t be able to run away from the issue or hide it elsewhere,” Karčiauskas concluded. “With the help of AI, we can already cut a building’s energy use, and its emissions, by 20% to 30% in months, without expensive retrofits. That’s the kind of result you can verify and defend, and it represents the impact on-site.”


 

8. Xeneta insights

 

Xeneta’s Weekly Ocean Container Shipping Market Update https://www.xeneta.com/news/xeneta-weekly-ocean-container-shipping-market-update-20.08.25 has produced a number of comments into the current state of the container shipping market.

“With a continuing trend for increasing capacity on fronthaul trades and subdued ocean container shipping demand, spot rates will fall further in the coming weeks. Shippers should not fear peak season surcharges because, quite simply, there is no traditional peak season in 2025,the organisation says.

Tendering in times of volatility – how can ocean container shippers achieve financial savings and supply chain resilience ( https://www.xeneta.com/blog/tendering-in-times-of-volatility-how-can-ocean-container-shippers-achieve-financial-savings-and-supply-chain-resilience) looks at the strategies shippers can adopt to identify opportunities – and risk – by assessing the contrasting landscape across four of the world’s ocean container trades:

The impact of container shipping costs on import and consumer prices is considered in https://www.oecd.org/en/publications/the-impact-of-container-shipping-costs-on-import-and-consumer-prices_957f0c0c-en.html.

Container shipping cost shocks remain relevant for policy makers to consider, given continued very large price shocks, Xeneta says.


9. Bunker business

LR’s latest FOBAS Fuel Insight report highlights broadly steady fuel quality with particular issues around high sediments and chemical contamination, and an increased use of biofuel blends with developments in energy-content measurement. Global bunker fuel quality remained resilient in the first half of 2025 despite growing fuel diversity and tightening environmental regulation, according to LR’s latest FOBAS Fuel Insight report.

The findings highlight how improved testing, data sharing and operational practices are supporting shipowners as they adapt to cleaner blends and stricter sulphur limits.

Analysis of fuels tested by LR’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) shows that the vast majority met specification and were fit for purpose – 3.5% of very low sulphur fuel oil (VLSFO) fuel samples were off-spec, but only a small fraction of these were unusable. For example, 0.6% of VLSFO samples exceeded the 0.53% 95% confidence range of the 0.50%m.m MARPOL Annex VI limit. Sediment stability also showed varied performance at major ports, with certain ports facing continued problems while others providing much more stable fuel. Distillate fuels continued to demonstrate predictable behaviour, remaining the premium choice for operations requiring tighter quality control.

Sustainability and fuel diversity are key trends in the H1 2025 findings. Uptake of FAME-based biofuel blends, notably B30 RF, is increasing across ports including Singapore, Algeciras and Antwerp. This is being driven by regulatory clarity from MEPC 83 and ISO 8217:2024, which confirmed that blends up to 30% are treated as conventional fuels, simplifying NOx compliance. FOBAS testing to date has found no systemic operational issues with these blends, with most quality considerations linked to the conventional fuel components.

The report also notes a growing shift to direct calorific value measurement, using ASTM D240 Bomb Calorimetry, to more accurately account for the lower energy content of biofuel blends. Early adopters report more precise consumption forecasting, improved voyage planning and reduced cost variability.

Regulatory change has also continued to shape fuel decisions. From 1 May 2025, the Mediterranean’s designation as a Sulphur Emission Control Area (SECA) brought a 0.10% sulphur limit into force, prompting operators to fine-tune fuel management strategies alongside preparations for EU and FuelEU Maritime requirements.

Usman Muhammad, FOBAS Product Manager, said: “Shipowners today face a more complex fuel landscape than ever before. Our latest findings show that quality remains high and compliance strong, but also that success increasingly depends on proactive testing, data-driven decision-making and close cooperation between suppliers and operators. This approach will be essential as the industry accelerates its transition to low- and zero-carbon fuels.”

LR’s FOBAS service provides industry-leading expertise in fuel testing, advisory, and risk mitigation strategies, supporting ship operators in navigating the complexities of fuel quality and regulatory compliance.

The FOBAS Fuel Insight Programme is a bi-annual series of fuel quality reports, which share the knowledge and experience of the FOBAS team in a comprehensive and easily accessible format. It is not just about testing fuel, it’s about empowering the maritime industry with the knowledge and tools needed to make informed decisions, reduce risks, and embrace the future of sustainable shipping.


 

10.  Sellers’ losses

Law firm Hill Dickinson  has recently been  looking at a case where the  court considered the appropriate measure of damages for the seller’s loss on a gasoline contract where there was no available market in:

Trafigura Pte Ltd -v- El Soobat Energy Co Ltd [2025] EWHC 1684 (Comm)

In this dispute relating to the non-payment for a consignment of gasoline by the buyer, the Court granted the seller’s application for summary judgment in the buyer’s absence. Given that the buyer was held to have made a voluntary decision not to attend the hearing nor to be represented, the Court decided it was appropriate to proceed in the buyer’s absence.

The Court found that the seller was entitled to recover its loss on the resale of the gasoline. It had made commercial sense to resell the gasoline locally in Sudan and to the sole viable alternative local buyer. The buyer had been given ample opportunity to fulfil its contractual obligations and to take delivery of the gasoline but had failed to do so.

The decision usefully sets out how the Court will assess the quantum of damages where there is deemed to be no available market but a seller nonetheless manages to resell goods to a substitute buyer, Hill Dickinson says.

“For these purposes, it is important that the seller ensures that it has the best possible evidence of its attempts to mitigate its losses and best available commercial options for reselling and/or otherwise disposing of the goods.” For full details see the Hill Dickinson website.

 

 

 


11. Arbitration proceedings

Hill Dickinson has also been considering a case where charterers who took part in arbitration proceedings were prevented from challenging the tribunal’s jurisdiction in A&N Seaways and Projects PVT Ltd -v- Allianz Bulk Carriers DMCC (Bharadwaj) [2025] EWHC 2126 (Comm) .

S.72(2)(a) of the Arbitration Act 1996 (1996 Act) provides that a person who takes no part in arbitral proceedings has the same right as a party to the proceedings to challenge an award pursuant to s.67 of the 1996 Act on the ground of lack of substantive jurisdiction over him.

A party cannot have its cake and eat it. It must elect at the outset to snub the arbitral process entirely or to engage. However, any engagement at all will cost that party the right to apply under s.72.
Whether a party takes no part in the proceedings will all depend on the exact circumstances. In this case, charterers who faced arbitration proceedings brought by owners had initially protested the tribunal’s jurisdiction and had asked owners to withdraw their notice of arbitration, reserving their rights in relation to the arbitrability of the dispute. However, they subsequently sought a time extension from the Tribunal in order to obtain counsel’s advice and prepare any appropriate application or submissions. No such submissions were ever served. Nonetheless, the Court found that the Charterers had taken part in the reference, which was fatal to any s.72 claim.

Hill Dickinson explained in an online opinion piece that “The decision highlights that issuing an arbitration claim form within the 28-day time-period will not necessarily assist if the basis for challenging an arbitration award is not sufficiently particularised at the same time. This is particularly so where the applicant wishes to make serious allegations of fraud. It is also a sobering reminder of the strictness that applies to s.72 appeals.”

For full details of the case see the Hill Dickinson website.


Notices and Miscellany

Nuclear approach

As the maritime sector races towards decarbonisation, is it time to reconsider nuclear as a viable energy solution for shipping? The Indian Register off Shipping will be holding an event to discuss the issue on September 16, when leading voices in the industry will explore the technological, economic, and regulatory dimensions of nuclear propulsion.

Is Nuclear the Missing Piece in Maritime Decarbonisation?
Date: Tuesday 16th September, 2025
Venue: Legislate, County Hall, Belvedere Rd, London SE1 7GP
Timings: 1400 – 1600 hrs followed by drinks reception

Event details – https://lisw.com/event/indian-register-of-shipping-roundtable/

Carbon capture

Onboard Carbon Capture and Storage (OCCS) is a promising solution to reduce shipping’s greenhouse gas emissions. To support this key development, the IMO’s Future Fuels and Technology (FFT) Project is hosting a Technical Seminar on OCCS Systems.

There will be a discussion of the issues on 11 September 2025 at the IMO headquarters in London

Remote participation and a livestream on the IMO YouTube channel will be available.

 

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

Q:  How many lawyers does it take to change a Light Bulb?

A:  Such number as may be deemed to perform the stated task in a timely and efficient manner within the strictures of the following agreement

Whereas the party of the first part. also known as “The Lawyer” and the party of the second part, also known as “The Light Bulb”, do hereby and forthwith agree to a transaction wherein the party of the second part (Light Bulb) shall be removed from the current position as a result of failure to perform previously agreed upon duties, i.e., the lighting, elucidation, and otherwise illumination of the area ranging from the front (north) door, through the entry way, terminating at an area just inside the primary living area, demarcated by the beginning of the carpet, any spillover illumination being at the option of the party of the second part (Light Bulb) and not required by the aforementioned agreement between the parties. The aforementioned removal transaction shall include, but not be limited to, the following steps:

1)  The party of the first part (Lawyer) shall, with or without elevation at his option, by means of a chair, stepstool, ladder or any other means of elevation, grasp the party of the second part (Light Bulb) and rotate the party of the second part (Light Bulb) in a counter-clockwise direction, said direction being non-negotiable.  Said grasping and rotation of the party of the second part (Light Bulb) shall be undertaken by the party of the first part (Lawyer) to maintain the structural integrity of the party of the second part (Light Bulb), notwithstanding the aforementioned failure of the party of the second part (Light Bulb) to perform the aforementioned customary and agreed upon duties.  The foregoing notwithstanding, however, both parties stipulate that structural failure of the party of the second part (Light Bulb) may be incidental to the aforementioned failure to perform and in such case of the party of the first part (Lawyer) shall be held blameless for such structural failure insofar as this agreement is concerned so long as the non-negotiable directional codicil (counter-clockwise) is observed by the party of the first part (Lawyer) throughout.

2)  Upon reaching a point where the party of the second part (Light Bulb) becomes separated from the party of the third part (“Receptacle”), the party of the first part (Lawyer) shall have the option of disposing of the party of the second part (Light Bulb) in a manner consistent with all applicable state, local and federal statutes.

3)  Once separation and disposal have been achieved, the party of the first part (Lawyer) shall have the option of beginning installation of the party of the fourth part (“New Light Bulb”). This installation shall occur in a manner consistent with the reverse of the procedures described in step one of the self-same document, being careful to note that the rotation should occur in a clockwise direction, said direction also being non-negotiable.

Note:  The above described steps may be performed, at the option of party of the first part (Lawyer) by said party of the first part (Lawyer), by his heirs and assigns, or by any and all persons authorised by him to do so, the objective being to produce a level of illumination in the immediate vicinity of the aforementioned front (north) door consistent with maximization of ingress and revenue for the party of the fifth part, also known as “The Firm”.