The Maritime Advocate online–Issue 638


1. New York: The First Global Center of Arbitration
2. OW Bunkers – Sales Contract Issues
3. London International Shipping Week
4. Put Money in Terminals not Box Ships says Drewry
5. The Next Justices of the US Supreme Court
6. People and Places

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1. New York: The First Global Center of Arbitration

Carleen Lyden-Kluss has sent us a piece on the merits of NY Arbitration.
Those who operate in the New York jurisdiction do not believe in hiding
the merits under bushels.:

August 25, 2015– NYMAR (New York Maritime, Inc.) released today the
first in a series of articles demonstrating the strength and unique
characteristics of New York as a preeminent maritime center. The first
article, under the authorship of NYMAR Chairman, Clay Maitland, identifies
New York as the first global center of arbitration, and dates back to
1656. The release was timed to coincide with the participation of David
Martowski, a former President of the Society of Maritime Arbitrators
(SMA) at a conference in Brazil entitled “2nd OAB-RJ Conference
of Maritime Law- Challenges and Trends on Shipping and Port Logistics”.

“Given the long historical practice of arbitration in New York,
it is understandable that the passage of the United States’ Federal
Arbitration Act of 1925 originated in New York. By 1920, the Chamber
of Commerce and the New York State Bar Association drafted what would
become the New York Arbitration Act of 1920. The federal law that followed
in 1925 derived directly from the New York Arbitration Act” states
Maitland in the article. “With the adoption of a pioneering arbitration
act in New York in 1920, it was only a matter of time before the tradition
firmly established nearly 300 years before during Dutch rule, gave rise
to a modern regime of maritime arbitration.”

To view the article, click here:-

2. OW Bunkers – Sales Contract Issues

Gavin Ritchie from the Charterers Club has sent in a bulletin reflecting
on a recent London High Court decision on the demise of OW Bunkers.
The Judge held that the Sales of Goods Act is not applicable to a bunker
stem thus preventing the buyer from relying on the protection afforded
by the Act. The decision has been appealed and the ruling by the Court
is expected later this month.

The decision impacts those affected by the bankruptcy of OW Bunkers
under English law and with the recent Chapter 11 Court Protection granted
to a second major bunkers supplier, Bunkers International Corporation
those Charterers exposed to time and trip charters where they supply
bunkers to vessels should review their contractual arrangements.

Read the Bulletin in full here:-

3. London International Shipping Week

The world’s shipping industry will converge on London this week
for London International Shipping Week (LISW15 September 7 to 11). There
are more than 100 events, ranging from conferences and industry seminars
to board meetings and receptions, which will be attended by delegates
from at least 50 countries.

HRH The Princess Royal is Patron of this year’s London International
Shipping Week. She will attend a welcome reception hosted by the Government
at Lancaster House which will be attended by 350 international ambassadors,
shipping industry leaders and VIP guests.

LISW15 will officially open on Monday with the ringing of the Stock
Exchange bell. This will be followed by a Round Table Summit of maritime
leaders at 10 Downing Street, hosted by the Secretary of State for Transport,
Rt Hon Patrick McLoughlin MP. The Department for Transport will unveil
its keenly awaited Maritime Growth Strategy ahead of a meeting of the
Transport Select Committee later in the day.

Also on Monday the UK Chamber of Shipping will hold a short conference
to consider the forthcoming EU referendum and its impact on maritime
services and wider business. And on Wednesday afternoon the International
Chamber of Shipping will discuss the Rescue at Sea crisis which has
seen merchant vessels saving thousands of lives in the Mediterranean.

The importance of the maritime sector in the UK’s overseas economic
policies and international relationships will be highlighted and reinforced
by a Government reception, jointly hosted by the Secretary of State
for Transport and the Ministry of Defence, onboard the The Royal Fleet
Auxiliary ship RFA Argus which will be moored on the Thames at Greenwich
for the duration of LISW15. The Argus serves as a Primary Casualty Receiving
Ship (PCRS) and has recently returned from deployment to Sierra Leone
where her 100-bed medical complex was used to help support the fight
against Ebola. Argus deployed to Sierra Leone from Falmouth in October
2014 to provide aviation and amphibious support and medical capability
to the Department for International Development, returning in April
this year.

Landing on RFA Argus prior to the reception will be a brand new AgustaWestland
AW189 helicopter, the latest addition to the Maritime Coastguard Agency’s
fleet. This latest-generation, high performance, twin-engine helicopter
will be operated on behalf of the MCA by UK helicopter transport specialist

BBC Newsnight presenter Emily Maitlis will moderate the official LISW15
flagship conference, taking place at the Grosvenor House Hotel on Thursday
September 10. Keynote speakers include The Rt Hon Greg Hands MP, Chief
Secretary to the Treasury; Jeremy Penn, Chief Executive of The Baltic
Exchange; Robert Goodwill MP, Minister for Shipping & Ports; Koji
Sekimizu, Secretary-General, International Maritime Organization (IMO);
Paul “Chip” Jaenichen, Administrator, United States Maritime
Administration (MARAD) and Fotis Karamitsos, Acting Deputy Director
General, Directorate General for Mobility and Transport (DG Move), European

The week will culminate in a dinner in the Great Room at the Grosvenor
House Hotel, attended by up to 900 people from throughout the global
shipping industry.

Five charities will benefit from a number of LISW15 events, including
a charity golf day, gala dinner collection and dragon boat race. They
are: Apostleship of the Sea, OSCAR Campaign (Great Ormond Street Hospital),
Sailors’ Society; Seafarers UK, and the Mission to Seafarers.

Further information can be found on the dedicated event website:


4. Put Money in Terminals not Box Ships says Drewry

Mike Wackett writing in the Loadstar says that investors are still
doing well by putting their money in box terminals:-

A rapid increase in the size of containerships and the formation of
larger vessel-sharing alliances is creating “unprecedented challenges”
for container terminals around the world, according to a new report.
But the box handling facilities themselves remain a good bet for investors.
Shipping consultancy Drewry has just published its 2015 Global Container
Operators Annual Report, in which it says that the rising port demand
associated with “ever-larger vessels” is the driver for terminal
operators to make significant investments in additional handling capacity.
Drewry predicts that global port demand will grow at an average of 4.5%
a year through to 2019, equating to an additional 168 million teu, bringing
the annual global total to almost 850m teu. And, according to the consultant,
Asia is set to be the star performer accounting for more than 60% of
the forecasted growth during the period.

The response from the major international operators is to make “significant
investments” in additional capacity over the next five years, says
Drewry, albeit noting that some operators, being part of shipping line
portfolios, “have little or no expansion plans”. Indeed, some
ocean carriers have sold terminal assets to raise cash to prop up under-pressure
balance sheets.

One of the report’s authors, Neil Davidson, senior analyst for
ports and terminals, said owning and operating international container
terminals remained a profitable business despite the “significant
challenges ahead”.

“The typical EBITDA (earnings before interest, taxes, depreciation
and amortisation) margins for international terminal operators remain
in the range from 20-45% and the 2014 financial results were much in
line with previous years, illustrating the consistency and reliability
of container terminal operators’ profitability,” he said.
“However, maintaining these margins will become increasingly challenging
in the face of the demands created by bigger ships and alliances,”
he added.

APM Terminals and DP World are the most active terminal operators in
terms of the number of new projects scheduled, but Singapore’s
PSA International is adding the most capacity, particularly in its home
port, says the report. Hutchison, CMA CGM, TIL and ICTSI also have significant
plans, with the latter’s expansion representing a 40% increase
over the current capacity of its portfolio, notes Drewry.

Moreover, there are future contenders for the ranks of the world’s
top terminal operators, including Ports America, Yilport, Gulftainer
and Shanghai International Ports Group. Shares in terminal and port
companies remain attractive to financial investors who see their business
model stability and land assets as a much better bet than the boom and
bust volatility of container lines. But there are a final few words
of caution from Mr Davidson on the impact of ultra-large container vessels:
bigger ships and the increased size of alliances will have “far
reaching consequences, driving up operating costs and capital expenditure

5. The Next Justices of the US Supreme Court

Courtesy of the Browser we read this sensible piece by Josh Blackmann
& Randy Barnett which appears in the Weekly Standard . It is all
about how a Republican president should handle the next appointments
to the Supreme Court.

The authors say confirmation battles are worth it, since they they
put a judge in place for decades. They say the President should Encourage
full-throated judges who say what they think and they should focus on
the constitution — clauses, not cases. “Zeroing in on a single
issue, whether abortion, war on terror, or same-sex marriage, has proved
to be a miserable predictor of judicial behavior”

6. People and Places

Warren Jones has been appointed TIACA Director, reporting to Doug Brittin,
Secretary General and based at the Association’s Miami headquarters
in the US.


BMT Designers & Planners, a subsidiary of BMT Group, the international
maritime design, engineering and risk management consultancy, has announced
the appointments of Albert Graves as Financial Controller and Greg Jose
as Marketing Manager.

From 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.

There are numerous references to the US Supreme Court; this one, which
appeared in Issue 182 of 16th November, 2004 addresses the humble Himalaya

Upholding Himalaya

THE US Supreme Court has upheld the validity of a Himalaya clause in
a dispute involving cargo damage sustained during inland transit.

In a case reported on the Holland & Knight website, an Australian
manufacturer shipped cargo from Australia to Huntsville, Alabama, via
Savannah, Georgia. The shipper contracted with a freight forwarder for
the shipment and the bill of lading issued by the NVOCC included a Himalaya
clause extending the COGSA liability limitations to downstream parties.

The freight forwarder contracted with a vessel operator for actual
carriage of the cargo. The bill of lading issued by the vessel operator
likewise included a Himalaya clause. The vessel operator contracted
with a railroad company for carriage of the cargo from Savannah to Huntsville.
Enroute, the train derailed and the cargo was damaged. The shipper brought
suit against the railroad, among others. The railroad contended that
its liability was limited under COGSA by means of the Himalaya clauses.

The trial court agreed with the railroad, but this ruling was overturned
by the appeal court, which held that there was no privity of contract
between the shipper and the railroad as required by state law. On review,
the US Supreme Court ruled that the contract was maritime in nature
and that the need for a uniform maritime approach was not affected by
the fact that the damage was incurred during the inland part of the
transit. The court held that the railroad was entitled to avail itself
of the COGSA limits of liability by means of the two Himalaya clauses.
(Norfolk Southern Railway Co v James N Kirby Pty Ltd)

Dog Story

A Baptist preacher and his wife decided they needed a dog.

Ever mindful of the congregation, they knew the dog must also be Baptist.

They visited an expensive kennel and explained their needs to the manager,
who said he thought he had just what they needed.

The dog was produced and the manager said “Fetch the Bible.”
The dog bounded to the bookshelf, scrutinized the books, located the
Bible, and brought it to the manager.

The manager then said “Find Psalms 23”.

The dog, showing marvelous dexterity with his paws, leafed through
the Bible, found the correct passage, and pointed to it with his paw.

Duly impressed, the couple purchased the dog.

That evening a group of parishioners came to visit.

The preacher and his wife began to show off the dog, having him locate
several Bible verses.

The visitors were amazed.

Finally, one man asked “Can he do normal dog tricks too?”

“Let’s see” said the preacher.

Pointing his finger at the dog, he commanded, “Heel!”

The dog immediately jumped up on a chair, placed a paw on the preacher’s
forehead and began to howl.

The preacher turned to his wife and exclaimed, “Good grief, we’ve
bought a Pentecostal dog!”

[Source: Paul Dixon]

Wetting the Baby’s Head

The tired old priest had arrived at the house, with the young parents
excitedly expecting the invited guests to arrive for the baby’s baptism
ceremony in the garden.

The priest approached the young father and said solemnly, ” Son,
Baptism is a serious step. Are you prepared for it?”

“I think so,” the man replied. “My wife has made appetizers
and we have a caterer coming to provide plenty of food and desserts
for all of our guests.

“I don’t mean that,” the priest responded. “I mean,
are you prepared spiritually?” –

“Oh, sure,” came the reply. “I’ve got a keg of beer
and a case of whiskey.”

[Source: 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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