It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Monday, October 23, 2023
U.S. Navy Petty Officer Sentenced for Defrauding Injured Veterans' Fund
A former chief petty officer has been sentenced to 30 months in prison for conspiring to defraud a severely injured servicemembers' program out of $2 million.
Christopher Toups, a Chief Petty Officer Construction Mechanic assigned to an EOD unit in Coronado from 2010-14, has admitted that he set up a scam to fraudulently claim servicemember disability benefits. With the help of his wife - U.S. Navy nurse Kelene Meyer (AKA Jacqueline Toups, Kelene McGrath) - and U.S. Navy doctor Michael Villaroel, Toups used fake paperwork to get funds from the Traumatic Servicemembers Group Life Insurance Program (TSGLI).
The TSGLI supports "severely injured" servicemembers with payments of up to $100,000 each for a qualifying traumatic injury. It is not for minor aches or sprains: covered events include amputations, facial reconstruction, comas, burns and loss of sight. The program is funded by servicemembers themselves and by the U.S. military, and it is privately administered by a large insurance corporation.
The scheme was simple. Toups made up fake claims for injuries and disabilities and submitted them to TSGLI for payment, and he told other EOD unit servicemembers that they should do the same. He directed some of them to submit their paperwork through Meyer, who "falsified or doctored" the records to create fake or exaggerated injuries. In some cases, the team copied the real medical records of other injured people, substituting the name of the fraudulent claimant instead. Dr. Villarroel then certified these documents for submission to the benefits administrator.
In return, the participating servicemembers allegedly paid Toups a fraction of the insurance payouts as kickbacks, some of which were distributed to Meyer and Villarroel. Altogether, the fraudulent claims ring pulled in $2 million, including $400,000 for Toups.
“Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated."
Meyer and Villaroel have also pleaded guilty to similar charges, and six other individuals have also been charged in related cases.
MONOPOLY CAPITALI$M
Transformational Technologies Lead ABS Japan National Committee Meeting
[By: ABS]
Maritime industry leaders came together at the annual ABS Japan National Committee Meeting to discuss the latest developments in technology, sustainability, regulations and market trends in the shipping industry.
ABS President and COO John McDonald provided an update on ABS’ industry-leading safety performance and how ABS has secured the number one position in global orderbook share with a fleet that has grown to 285 million gross tons with more than 11,400 assets.
“Collaboration is key to keeping our industry in the forefront of the energy transition, and our committee includes the diverse expertise of many knowledgeable stakeholders, which provides powerful insight to do just that. I am proud of our long-standing relationships and years of experience in Japan and look forward to continuing our work together,” said McDonald.
Committee members were briefed on the latest developments in the dynamic regulatory environment and given a detailed breakdown of the industry’s sustainability challenges and ABS’ services for the industry.
They were given an update on current market trends and transformational technologies such as renewable power sources, carbon capture and pioneering developments in digital class.
Koichi Muto, ABS Japan National Committee Chairman and Corporate Advisor to Mitsui O.S.K. Lines, gave a detailed analysis of the renewable energy landscape for shipping.
He said: “We must think about what renewable energy will look like and what will happen to the power of ships. There are many possibilities for renewable energy. Whatever the cause of global warming, fossil fuels will eventually run out, so we will work to develop new energy sources as soon as possible. From now on, we must think about creating a truly sustainable energy society for eternity.”
The committee meetings are a forum for ABS members, including owners, operators, charterers, and industry representatives from flag Administrations, owner associations, and the shipbuilding and insurance sectors, to come together with ABS leaders and discuss industry issues and developments. These forums are an important part of an ongoing dialogue with the industry to address technical, operational and regulatory challenges.
The products and services herein described in this press release are not endorsed by The Maritime Executive.
CRIMINAL CAPITALI$M
European Commission Seeks to Support Ports in Fight Against Drug Smuggling
The European Commission today mapped out an aggressive roadmap of actions designed to step up the fight across member states against drug trafficking, including a strong focus on stopping illegal activities at ports across Europe. In laying out its plan and call for full support from the European Parliament and the Council, the Commission highlights the drug trade as “one of the most significant threats faced by the EU today.”
Today’s action follows a series of previous reports that have highlighted the scope of the drug trade and organized crime ranging from the major shipping carriers to ports across Europe. Europol in May 2023 released a detailed report working with the ports of Antwerp, Hamburg/Bremerhaven, and Rotterdam, looking at the efforts of organized crime. They cited the broad inflation of the ports by organized crime which was using efforts such as stolen identification numbers to gain access to containers that were being used to ferry the narcotics from South America. They found that criminal networks were placing people as employees in ports to gain access to their shipments. Separately, port officials have warned that the drug cartels are expanding efforts into smaller and secondary ports to avoid detection.
Executives from both MSC and Maersk have talked of their extensive efforts aimed at combatting drug smuggling. Last year, several of the major shipping companies and ports announced new partnerships to coordinate their efforts. The Financial Times, however, today in reporting the new EU roadmap quotes a Maersk executive saying the whole supply chain has been infiltrated by drug gangs.
The European Commission cites data from 2021 saying 303 tonnes of cocaine was seized while ports continue to make increasingly large captures. Both Rotterdam and Algeciras recently set records with the Dutch authorities announcing a single seizure of eight tones of cocaine while the Spanish seized 9.5 tonnes.
"Europe has now replaced the U.S. as the single largest cocaine market in the world and is fast becoming a world hub for drug trafficking – a disturbing claim to fame and one we have to redouble efforts to reverse," said Margaritis Schinas, Vice-President for Promoting our European Way of Life. "Today we are announcing a new series of measures to enhance the resilience of logistical hubs and dismantle criminal networks. This will be complemented by strong engagement with partners worldwide to crack down on the main supply routes."
The new roadmap from the European Commission calls for the launch of a new European Ports Alliance. It would specifically seek to reinforce customs authorities and law enforcement as well as the public and private ports to stop the infiltration by criminals. The plan has a total of 17 actions in four priority areas that also include more financial and digital investigations to catch criminal networks, better cooperation between member states, and working with international partners. The Commission commits to implementing its actions in 2023 and 2024.
The Financial Times in reviewing the roadmap says that it calls for allocating €200 million for scanning equipment at the ports. They cite Antwerp as an example saying overall that just two percent of goods are scanned and five percent of the containers identified as “high risk.” Antwerp’s current plans call for scanning all high-risk containers arriving at its terminals by 2028.
Another part of the effort would increase the screening and vetting of port employees. The Commission also plans to commit €20 million to support the Internal Security Fund and efforts to seek proposals to combat organized crime.
DP World Bags 30-Year Port Concession in Dar es Salaam
On Sunday, DP World closed yet another major deal along the East African coastline, bagging a 30-year concession at the strategic port of Dar es Salaam in Tanzania. DP World will run four of the 12 berths at the port. The deal was signed between Plasduce Mkeli Mbossa, Director General of the Tanzania Ports Authority and Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, in the presence of the President of Tanzania Samia Suluhu Hassan.
DP World says it will optimize the port’s operations and improve transport and logistics services throughout Tanzania and its hinterland. The group has a multi-phase investment plan, beginning with an initial commitment of $250 million to upgrade the port. The total investment will come to $1 billion throughout the entire period of the concession.
“This is in line with Tanzania’s strategic development plans. Alongside other ports that we operate, this concession agreement marks another milestone in our collective efforts to leverage DP World’s global and local expertise to enhance the region’s supply chain,” said Sultan Ahmed bin Sulayem.
Improved efficiency at the Dar es Salaam Port could easily turn it into a maritime gateway for the export of green energy metals from the copper belt in Southern-Central Africa, the partners say.
Other projects that DP World promised to prioritize include construction of a refrigerated storage facility to serve Tanzania’s agricultural sector, as well as improvements to to railway connections to the port. Development of a special economic zone is also in the works.
“We are excited to collaborate with DP World to modernize the strategic port in Dar es Salaam. This project will create significant value for end-users and help the government achieve its goal of reducing logistics costs,” commented Plasduce Mkeli Mbossa.
The lease had earlier sparked controversy after the Parliament approved the Inter-Government Agreement (IGA), signed between Tanzania and Dubai (UAE) to facilitate DP World’s operations in Dar es Salaam.
Legal experts and the opposition party condemned the IGA, as it contained some clauses that would benefit DP World more than Tanzania. One clause that was highlighted as unusual was giving DP World the right to manage coastal and lakeside ports in perpetuity if it entered into a concession. Another clause that raised concern was one that prevented Tanzania from withdrawing from the deal “in any circumstances, including in the event of material breach, fundamental change of circumstances, severance of diplomatic or consular services.” However, the Office of the Attorney General has since reevaluated some of these terms.
With the Port of Dar es Salaam deal, the DP World’s footprint in the African ports sector continues to expand. Other notable port projects that it is involved with include Berbera, Dakar and the Dry Port in Rwanda.
The Horn of Africa is synonymous with land conflicts, but a recent lecture by Ethiopia’s Prime Minister Abiy Ahmed could shift focus to the control of the Red Sea.
In July, rumors started spreading that the Ethiopian government was plotting to establish a link to the Red Sea, with hope of developing a port. Following a video published by the state-owned Fana Broadcasting Corporate (FBC) early this month, it is now common knowledge that Abiy has his eyes trained on the Red Sea to assert Ethiopia’s regional influence in the Horn of Africa.
“What I wanted to talk to you today is regarding water; regarding the Red Sea Water. We can see that only a narrow strip of land separates us from the sea. It is crucial for the present leaders of Somalia, Djibouti, Eritrea and Ethiopia to engage in discussions, not just for the present, but to ensure lasting peace,” PM Abiy said in the 45-minute address to party officials, recorded Oct. 13.
The comment has spawned resentment amongst Ethiopia’s neighbors, with Eritrea saying the commentary was “excessive and perplexing to all concerned observers,” according to a statement published by Eritrea’s Information Ministry.
Last week, Alexis Mohamed, a senior adviser to Djiboutian President Ismail Omar, came out criticizing Ethiopia’s appeal for Red Sea access. “Our two countries have always maintained strong, friendly relations. But you should know that Djibouti is a sovereign country, and therefore our territorial integrity is not questionable, neither today nor tomorrow,” stressed Alexis. Somalia has also joined the fray, saying that it is not open for discussion on matters of territory.
Ethiopia became landlocked in 1993 after Eritrea gained independence, marking the end of a three-decade war between the two countries. Ethiopia is now currently served by Djibouti Port, using a network of roads and the 752km Addis Ababa-Djibouti Railway, the first electrified railway in East Africa. Ethiopia has also signed an agreement with Kenya on development and eventual use of the Lamu Port - South Sudan - Ethiopia (Lapsset) transport corridor.
However, PM Abiy continues to emphasize that Ethiopia’s lack of direct access to the sea is a limitation to its international trade. Abiy referenced a 2018 United Nations study, which indicated that sea access can account for up to 25-30 percent of a country’s GDP.
From an economic and political standpoint, it is easy to see why Ethiopia is agitating for a coastline. After Nigeria, Ethiopia is the second most populous country in Africa with a population of over 120 million people, and it is projected to reach 150 million by 2030. In addition, Ethiopia is also one of the emerging economies in Africa thanks to its extensive agricultural and manufacturing sectors. Currently, Ethiopia’s nominal GDP is the fifth largest in Africa, competing with the continent’s most powerful coastal states.
Unfortunately, Ethiopia’s quest for coastal access would come at a great cost of another unwanted regional conflict in the Horn of Africa. According to some analysts, this could be avoided by countries removing all barriers to trade and movement of goods.
“The next step could be to give or sell landlocked countries a piece of land at the coast to build their own ports or logistics hubs. The sweetener would be to grant those zones tax-free status or mark them as diplomatic areas,” argued Charles Onyango-Obbo, a journalist and political commentator on East Africa.
Ethiopia has suggested it could offer its neighbors shares to the Grand Ethiopian Renaissance Dam in exchange for Red Sea access. But it appears most countries in the region are opposed to any discussions on territory.
Interestingly, Ethiopia seems to have included the Red Sea in its ongoing plans to reconstruct its national identity. Days after Abiy’s video was published, the Ministry of Peace released a draft document asserting Ethiopia’s strategic and economic interests in the Red Sea. The document, titled “Ethiopia’s National Interest: Principles and Content,” mentions that Ethiopia should secure its rights to use the Nile River and the sea, as these water bodies are tied to the nation’s existence.
Sonar Survey Reveals the Lost WWII Ships of Dunkirk
A team of French and English researchers have surveyed the sites of 30 shipwrecks from Operation Dynamo, the sealift that saved Allied troops from advancing German forces at Dunkirk in 1940.
Operation Dynamo, also known as "the Miracle of Dunkirk," involved the evacuation of hundreds of thousands of Allied soldiers who had been surrounded during the rapid German invasion of France. The port infrastructure at Dunkirk was quickly destroyed by German heavy bombers, so embarkation shifted to the beach and to an ad-hoc pier on the harbor's breakwater. To transfer the trapped and vulnerable troops, a swarm of 1,000 vessels - warships, passenger ships, fishing boats, workboats and yachts - made the crossing from England from May 26 to June 4, 1940.
The effort brought 340,000 British and French troops across the Channel to England - but not without a cost. These ships were exposed to naval mines and the dive bombers of the German Luftwaffe, and more than 240 were sunk, including about 170 small craft. The vessels in this ad-hoc fleet were celebrated by the British government and remembered as "The Little Ships of Dunkirk."
The Royal Navy destroyer HMS Vivacious alongside a sunken trawler at Dunkirk, 1940 (Imperial War Museum)
Three more previously-undocumented wreck sites were also discovered, bringing the total to 30. The survey also revealed that some of the known wrecks - like the lost British destroyer HMS Keith - are gradually deteriorating.
The multibeam survey is the start of a longer campaign to investigate the wreck sites and document them in their current state. Next year, in partnership with local divers, Drassm's researchers will return to carry out a detailed dive survey.
A three-dimensional sonar depiction of the passenger vessel Normannia, which was requisitioned for the Dunkirk evacuation (Drassm / Historic England)
World's Most Famous Warship Was Turning Into "Potting Compost"
The world’s most famous warship was in far worse condition than experts believed when they started a $55 million revamp, with her timbers reduced to ‘potting compost’.
On the eve of the anniversary of her finest hour – leading the Fleet to a decisive triumph over the Franco-Spanish fleet at Trafalgar in 1805 – the team heading the restoration of HMS Victory have revealed how urgent the overhaul was.
The ship is undergoing the most comprehensive maintenance project in her recent history, a 15-year project to restore her to how she looked as Nelson’s flagship.
A lot of the ship is currently hidden behind protective tarpaulin, having much of her rigging, masts and sails removed.
The conservation team began work on her hull in May 2022 when scaffolding was erected around the ship to allow her to dry out – Victory is now drier than at any time in her 250-year-plus history – and for work to be carried out in all weathers and for visitors to watch the shipwrights.
Courtesy of the National Museum of the Royal Navy
The restoration of the hull focuses on replacing decayed planks and damaged frames.
Andrew Baines, the project director, said: “Although a cursory look at Victory in early 2022 might have given the impression that the ship was in good condition, in reality a thin skin of paint and filler masked planking that was almost entirely rotten on the ship’s starboard side.
“As soon as the outer, sound, layer was removed, the team of shipwrights were confronted with material that no longer resembled timber and was much closer to potting compost.”
The decayed wood has been removed – but in doing so it’s revealed that the rotting had spread to the frames to a much greater extent than had been assumed, meaning more repair and replacement work.
And while traditional shipbuilding methods fared Victory well for most of her career, more recent restoration work – after 1955 – perhaps caused as much harm as good. Nothing fitted or installed before the mid-50s needs replacing.
“Unfortunately, however, the materials and workmanship of the post-1955 material has helped contribute to the quantity of rot in the hull, and will largely be replaced,” Baines said.
Fortunately, the National Museum of the Royal Navy – which looks after Victory on behalf of the Royal Navy – has carried out considerable research to understand the most appropriate materials to be used and how to minimise the risk of water getting into the timber, rot and insect infestation.
That cutting-edge scientific work comes alongside traditional methods used by shipwrights and riggers, conservators and archaeologists, documenting each stage of the revamp to learn as much as possible about the hull – and to assist future generations maintain and restore Victory when required.
All the degraded planks from the ship’s central section have now been removed, the frames are drying and detailed surveys of Victory as she stands now have been carried out ahead of the next stage of the renovation: replacing those frames and planks.
“Much work remains to be done, but we are on track to complete the project in a little less than ten years, at a cost of [$48-55 million],” Baines said.
Despite the work ongoing on Victory, the traditional Trafalgar Day service and ceremony to honour Nelson and his men will take place on board the ship as normal tomorrow - and the legendary 'England expects...' signal hoisted.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
SCHADENFREUDE
Wood Chip Carrier Catches Fire Twice in Cape Town
Firefighters and salvors have brought a large cargo fire under control aboard a bulker at the port of Cape Town.
On Saturday, a fire broke out in a cargo of eucalyptus paper bales in the forward hold of the wood chip carrier Batavia Express. The Cape Town fire department responded to the scene, and assisted by expert salvors from Smit, they set about extinguishing the blaze and preserving the rest of the cargo. Fire-damaged paper bales were pulled out of the hull, extinguished and landfilled, a fire department spokesperson told local outlet IOL.
The undamaged cargo will be transferred to a nearby warehouse for temporary storage. The situation is under control, but the full salvage operation is expected to extend through this Friday.
According to specialist outlet Insurance Marine News, it is the second time Batavia Express has had a cargo hold fire in less than a month. In mid-September, while the ship was under way from Santos to Qingdao, a fire broke out in one of the holds. Batavia Express had to divert to the anchorage at Saldanha Bay, north of Cape Town, arriving Sept. 16. A team of 10 local firefighters joined the ship to bring the fire under control, and the vessel was allowed to berth in Cape Town on Sept. 20. It was fully extinguished by Sept. 22.
AIS data shows that Batavia Express has remained in Cape Town since the end of the previous fire.
At the time of her delivery in 2013, the 70,000 dwt Batavia Express was the largest purpose-built wood chip carrier in the world. She is operated by a Singaporean firm and has maintained a clean port state control inspection record.
ACTUAL SPILLAGE
Target’s Insurers Sue Maersk for $5.8 Million for Containers Lost Overboard
Giant retailer Target Corporation’s insurer has filed suit against Maersk for compensation for containers lost overboard in a 2021 incident. Starr Indemnity & Liability Company acting as the subrogee of Target filed suit in the Southern District of New York on October 19 seeking more than $5.8 million.
The suit stems from an incident aboard the Maersk Eidenoven containership (13,100 TEU) which happened on February 17, 2021, while the vessel was sailing approximately 45 nautical miles off the coast of Northern Japan. Maersk reported at the time that the vessel experienced an engine stop in heavy seas causing the ship to be unable to maneuver and experience a severe roll. They later determined that the engines on the 11-year-old ship shut down when an indicator recorded low engine oil pressure triggering a safety feature.
Propulsion power was quickly restored on the vessel, but it returned to Japan. While in Yokohama, they discharged 65 damaged containers and inspected the bays. The survey showed that the vessel had lost 260 containers in the ocean east of Japan. Maersk said however that there was only minor damage to the vessel and all the required welding and repairs could be completed in Yokohama. The vessel resumed its voyage to Los Angeles at the beginning of March.
The lawsuit states that between January 12 and February 4, cargo was delivered to the ports of Phnom Penh, Cambodia and Yaintan, Chia for transport aboard the Maersk Eidenhoven to California. They believe that a total of approximately 57 containers were delivered to Maersk containing various consumer goods.
When the Maersk Eidenhoven reached its port of discharge, the suit says Maersk failed to discharge the containers and deliver the cargo in good order. They believe the entire cargo was lost overboard with the suit alleging negligence or breach of duty by the defendants, Maersk and the Maersk Eidenhoven.
The suit values the cargo at just over $5.8 million, but reports they have not been paid for the cargo. The insurer reserves the right to increase the value of loss while also seeking a judgment against Maersk and the vessel. Further, they are asking the court to arrest the vessel and order it to be sold to satisfy the judgment.
While the case will likely be resolved by Maersk and its insurers, it highlights the continued challenges for the industry over the loss of containers. The years 2020 and 2021 were especially bad for the industry with large casualties mostly related to weather. Nearly 4,000 boxes went overboard in 2020 and a further 2,000 in 2021, according to data from the World Shipping Council. The industry has focused on how large vessels handle in bad seas as one step toward reducing container losses. Multiple companies are also working on devices or systems to better secure containers while they are in the racks and reduce movement in bad weather conditions.
The World Shipping Council reported losses had been dramatically reduced to just over 660 boxes in 2022. There are however efforts underway at the IMO to increase the monitoring and reporting of container losses.
Top photo by Alf van Beem of Maersk Eindhoven in 2017 (public domain)
NGO Seeks Support for Futuristic Catamaran Design for Migrant Rescue Vessel
This week the NGO along with French firm VPLP Design has put their unique design on display in the heart of Paris on the plaza in front of the famed Pompidou Center. They conducted a presentation at the center and are offering virtual tours of the vessel each day between October 17 and 22.
VPLP reports they started developing the design in 2020 and first presented the concepts in 2022. It is a futuristic catamaran that incorporates sea-going capabilities with a humanitarian mindset and is being promoted as a pioneering tool for the mass rescue of migrants. Known as Navire Avenir, the rescue vessel design was developed based on the traumatizing accounts of migrants, with the ultimate aim being to offer rescued migrants “care, attention, and friendship.”
Currently, a rag-tag fleet of small, older vessels patrols the Mediterranean to conduct rescue missions. The best of them are converted offshore support and supply ships and none of them have the facilities required for large rescues and to address the humanitarian needs of the people they are finding often on small, overcrowded, makeshift boats.
The Navire Avenir has been described as the first in a European fleet designed specifically for high sea rescue. It is the result of collaboration with rescue groups and individuals including survivors, engineers and naval architects, caregivers, cooks, and lawyers.
The vessel is specially designed for the purpose with facilities to support a reconnaissance aircraft, satellite search devices to help locate the migrants, and a helicopter landing pad. There would be four semi-rigid rescue boats and two stern ramps to deploy the rescue boats rapidly, even in rough weather. There would be cabins for 36 permanent crew aboard the vessel.
The vessel would have accommodations for 372 people, including 52 sanitary facilities, 38 showers, a shelter with bunks for the 372 people as well as 80 additional places on deck. It will have a fully equipped and air-conditioned hospital.
They are currently working on raising funds to build the vessel. They anticipate it would cost nearly $30 million. They have not yet selected a shipyard to build the vessel.
Ro/Pax Ferry Goes Aground and Spills Fuel off Sweden
The ro/pax ferry Marco Polo has gone aground off the coast of Hörvik, Sweden and is leaking fuel, according to local media.
At about 0625 hours on Sunday, the TT Line ferry was under way in the Baltic on a routine voyage from Trelleborg to Karlshamn when it gradually deviated to the west of its usual course and ran aground. It may also have touched bottom before the final grounding location, and with enough force to damage the hull, according to Swedish investigators.
A total of 71 people were aboard, including 41 passenbers and 30 crewmembers. All passengers and 10 crewmembers were taken safely off the ship and delivered to a nearby harbor.
The vessel is not in danger of sinking, according to Swedish maritime authorities, and salvors are examining it to determine the extent of the damage. An early assessment suggests that it has been holed towards the bow and amidships, resulting in some amount of flooding, according to Aftonbladet.
The fuel spill from the damage is substantial enough in scale that it can be smelt from nearby Solvesborg, according to local media. It has reached land in some locations, and the local municipality has advised residents not to swim in the water until the all-clear is given.
A containment boom has been deployed around the vessel to prevent further spread of the fuel. The amount released is not currently known.
A larger plume of petroleum was spotted south of the wreck site later Sunday afternoon, indicating that the ship may have been damaged earlier in the accident timeline. AIS data shows that the vessel passed close by a marked shoal just off its port side, and it slowed suddenly from 17 knots to 11 knots before picking up speed again.
"It has turned out that the ferry ran aground earlier in the morning and leaked oil for several nautical miles before it ran onto the foundation where it is stuck," said Swedish Coast Guard lead investigator Jonatan Orn, speaking to Aftonbladet.