Saturday, June 22, 2024

UPDATED

Key Bridge collapse: Some Dali crew members can go home, will be deposed later under last-minute deal

Salvage experts continue to clear the large amount of wreckage on the bow of the container ship Dali twelve weeks after the collapse of the Francis Scott Key Bridge.
(Jerry Jackson/Staff)


By MADELEINE O'NEILL | moneill@baltsun.com
BALTIMORE SUN
PUBLISHED: June 20, 2024 

Legal obstacles are now cleared to allow some crew members of the cargo ship that destroyed the Francis Scott Key Bridge to return home after 12 weeks stuck aboard the vessel.

A court hearing Thursday morning confirmed that the army of lawyers involved in litigation surrounding the crash reached an agreement late Wednesday that will permit some members of the crew to leave the United States and be deposed at a later date.

The hearing was scheduled originally in response to emergency motions from the city of Baltimore and another party, both of which have claims against the cargo ship Dali and raised concerns after learning this week that crew members could be leaving the country as soon as Thursday.

The ship’s operator is bringing on a replacement crew, which occurs periodically with crews in the industry, before the Dali is moved to Norfolk, Virginia, for more repairs as early as next week.

Both parties ultimately withdrew their motions and indicated they were able to reach an agreement: The lawyers for the ship’s owner and manager will guarantee that the crew members will appear for depositions later, possibly in London.

In all, eight crew members and two trainee cadets have been granted permission to return to their home countries, said Darrell Wilson, a spokesman for Synergy Marine Group, the vessel operator. The group includes a cook, several seamen, a fitter, an oiler and a general steward.

The exact timeline for their departure remains unclear. The remaining crew will be lodged in Baltimore for the time being, Wilson said.

Thursday’s hearing included seven government lawyers from various agencies, including the U.S. Department of Justice and the National Transportation Safety Board. None spoke at the hearing, where Senior U.S. District Judge James K. Bredar reaffirmed that an agreement had been reached and asked the lawyers to be as efficient as possible in the future.

Thursday’s hearing could have been avoided entirely if the lawyers for one of the claimants had withdrawn their emergency motion Wednesday night instead of Thursday morning, said Bredar, addressing attorneys William H. “Billy” Murphy Jr. and Jason P. Foster.

“How are we going to conduct this very complex and potentially lengthy proceeding in the coming months and years?” Bredar asked. “My aspiration is that we’re going to do so efficiently and with every lawyer bringing their A-game and being conscious of the fact that the actions they take or don’t take have consequences.”

After the hearing, Murphy said he was satisfied the emergency was resolved.

“We’re happy that we were able to file the emergency motion and cause the agreement to be made,” Murphy said.

His team filed the withdrawal as quickly as they could, he said, adding that they were still in negotiations as late as this morning.

Murphy’s client in the litigation, Damon A. Davis, has not yet filed his claim against the Dali. Murphy declined to describe his client’s connection to the case Thursday, saying Davis is suffering from post-traumatic stress disorder and does not want publicity.

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12 weeks after Key Bridge collapse, Dali crew still on board. Now a deal means some could be leaving.

The legal dispute began Tuesday when an attorney for the ship’s owner and manager, William Bennett, emailed claimants and informed them that eight crew members would be allowed to leave as early as Thursday.

The Coast Guard declined a request to help secure crew members temporary parole through Customs and Border Patrol, Bennett wrote, so the men would need to go directly to the airport from the vessel.

Claimants’ attorneys objected, noting that they had been promised plenty of notice before crew members began to return home. Their emergency motions triggered Thursday’s hearing, though the deal was reached before Bredar could take the bench.

The final agreement included the two trainees, whose names were not on the original list of crew members granted permission to leave. The ship’s lawyers also agreed to turn over personnel files and other documents about the crew members.

The Dali struck the Key Bridge early on the morning of March 26, collapsing the span into the Patapsco River and killing six members of a crew who were doing road work on the bridge. The accident closed the Port of Baltimore to all vessel traffic for weeks. It wasn’t fully reopened until this month.

The ship’s owner and manager, both companies based in Singapore, quickly filed a limitation of liability action in federal court aimed at capping the amount of damages they could be forced to pay at about $43 million, roughly the salvage value of the Dali and its cargo. Parties who believe they may be entitled to damages stemming from the crash have until September to file claims against the ship.

The Dali remained pinned under the Key Bridge until last month, when it was refloated and moved to Seagirt Marine Terminal. The massive ship and its crew, who are from India and Sri Lanka, have remained there since, as workers removed more bridge debris from the ship’s bow.


Some Dali crew to leave after months on ship in Baltimore

By Bernd Debusmann Jr, BBC News, Washington

The ship was towed away last month and is now at a local container terminal

Some crew members on the cargo ship that struck a major bridge in Baltimore are set to return home after nearly three months on the vessel, according to the cargo ship's management company.

Earlier this week, Baltimore officials dropped a petition that would have prevented the crew members from leaving so that they could be questioned.

The 21 seafarers, predominantly from India, have been stranded on the MV Dali since it crashed into Baltimore's iconic Francis Scott Key bridge on 26 March, causing it to collapse.

Six construction workers who were on the bridge were killed in the incident, which remains the focus of two investigations from the FBI and National Transportation Safety Board (NTSB).

The crash sent the mile-long bridge, a regional transportation artery, into Maryland's Patapsco River and across the vessel's deck, blocking the port of Baltimore.

The seafarers have lived on the vessel since the crash occurred. They were unable to depart the ship because they were considered witnesses and did not have valid visas or shore passes to enter the US.

According to local media reports, a deal reached between the city of Baltimore, the ship's owners, and its management company will now allow some sailors to leave the vessel.

But they will have to be made available for depositions even after they leave the US.

The number of crew members initially headed home - and their date of departure - is unclear.

When contacted by the BBC, Synergy Marine - the ship's management company -spokesperson Darrel Wilson said that the company is "working to send some crew home", while "some will remain to assist with the investigation".

He added that the crew is "doing well".

Andrew Middleton, who runs Apostleship of Sea - a programme that ministers to ships coming through Baltimore - said there were "mixed emotions" on board the ship when he went to meet the sailors on Thursday.

"The ones that get to go home are happy, relieved," he said. "But the ones that are staying are wondering when they will get to go home too. That's added to the mental strain."

He added that he believes some crew members may leave within days.

Mr Middleton said that it remains unclear when the remaining sailors will be given shore passes to step off the vessel, or what that will "look like" when they are.

Some, he said, could ultimately be housed in hotels while the investigations progress, an experience he said could be "isolating" without their fellow crew members.

Two unions representing the sailors said in May that morale on the ship had "dipped" due to "unfounded fear of personal criminal liability" and emotional distress.

Grace Ocean Private Ltd, which owns the ship, did not immediately respond to a request for comment.

In court documents filed earlier this week, lawyers for Baltimore said they were made aware last-minute that eight of the seafarers were planning to leave the country as early as Wednesday.

Mr Middleton also said he believes that eight sailors are expected to leave.

The city initially called for a judge to intervene to prevent that from happening.

A deal reached late Wednesday, however, includes a guarantee that the "vessel interests will produce the witness in question for deposition during the discovery phase" of legal proceedings, court documents show.

Baltimore officials are currently working to determine potential compensation for the incident and have resisted attempts by the Dali's owner to cap damages at $43m (£33.9m).

The US Justice Department has already interviewed the Dali's crew as part of its own investigation and has no objection to them leaving the country.

After months stranded under the metal and steel remnants of the Key Bridge, the 948ft (289m) ship was towed away last month and is now at a local container terminal.

Replacement sailors will be brought in while the ship remains at the terminal, according to CBS, the BBC's news partner.

Last week, the shipping channel outside of Baltimore that had been blocked by the crash was re-opened after 11 weeks of closure.


Deal Reached for First Dali Crewmembers to Depart

containership Dali Baltimore
Dali will sail with escorts bound for Norfolk and the next phase of the salvage operation (USCG file photo


PUBLISHED JUN 20, 2024 2:50 PM BY THE MARITIME EXECUTIVE

 

A deal was reached between the lawyers representing the City of Baltimore and the other claimants in the lawsuits with the owners and operators of the Dali that will permit the first of the crewmembers to depart the ship some 12 weeks after the vessel hit the Baltimore bridge. At the same time, the U.S. Coast Guard is reporting that the containership might also be departing Baltimore as early as tomorrow, Friday, June 21 with a replacement crew aboard.

The U.S. District Court met on Thursday for an emergency pretrial conference and the Judge James Bredar signed off on the deal that had been reached for the crew. The order filed today clears the way for three Able Body seaman, an ordinary seaman, an oiler, a fitter, a cook, and a general steward, to leave the vessel at the end of their contract and travel as early as today to their homes. Late on Thursday, the International Seafarers Center said travel has been arranged for Friday evening for the eight people.

The lawyers had initially sought to block the efforts to begin supplying a replacement crew to the vessel arguing that they had only been given two day’s notice despite earlier promises from Grace Ocean and Synergy Marine. They told the court that the departure could prevent “crucial discovery,” for the individuals who might not be available once they left the country.

All the lawyers met and conferred with the lawyers for Grace Ocean and Synergy and later filed a motion to withdraw their request. In exchange, Grace Ocean and Synergy Marine agreed to substantively respond to written discovery and guarantee the appearance of the eight crewmembers when the case reaches the deposition stage. The crewmembers leaving the ship are agreeing to appear in London or elsewhere to provide depositions which are not expected to happen sooner than November 2024.

The eight crewmembers of the approximately 21 aboard the vessel will be replaced by Synergy Marine. So far, there has been no mention of the timing when other crewmembers might be permitted to travel to their homes in India and Sri Lanka. The Seafarers Center said the crew will be moving to hotels onshore in Baltimore as they are being required to remain at the time as the legal cases proceed. The government will provide apartments or hotel rooms for the duration of the litigation.

The Dali after spending 55 days trapped under the wreckage of the Francis Scott Bridge has now been at Baltimore’s Seagrit Terminal for 31 days. During that time, additional debris was removed including more of the damaged containers from the bow. The Baltimore Sun is reporting that the work was completed yesterday and that there is no longer any overhanging debris and the U.S. Coast Guard believes all the loose debris has been removed or secured.

Coast Guard Cmdr. Baxter Smoak told The Baltimore Sun that the vessel could depart as early as Friday in what will be a “highly choreographed” operation to get the vessel from Baltimore to Norfolk, Virginia for the next phase of the recovery and repairs. Earlier reports had said the vessel would be offloaded and initial repairs made to the bow so that the owners could move the containership to another shipyard.

Describing the operation to The Baltimore Sun, the Coast Guard explained one challenge is that the Dali no longer has anchors. The one that was dropped on March 26 in an effort to slow the ship was cut off during the first phase of the salvage operation. The other anchor was “completely crushed” the newspaper says in the allision with the bridge. The ship will be underway with some of the debris still on its bow and it must go the USCG says from terminal to terminal not holding offshore to wait for a space. Late on Thursday, the International Seafarers Center said the departure is tentative set for 1800 on Friday.

While the Dali will be moving under its power for the voyage which is estimated to take 16 to 20 hours, the vessel will be accompanied by a small flotilla for safety. The USCG told The Baltimore Sun there will be four tugs accompaning led by a U.S. Coast Guard cutter. Resolve Marine will also supply an escort with the USCG saying one goal was to monitor to confirm nothing falls from the vessel. If it does the escorts will make it possible to immediately mark the debris for recovery.


Lawyers Ask Court to Block Departre from US of First Eight Crew from Dali

containership Dali Baltimore
Dali has been docked for a month in Baltimore after the removal (USCG photo)

PUBLISHED JUN 19, 2024 12:55 PM BY THE MARITIME EXECUTIVE

 


The crew of the containership Dali which knocked down the Francis Scott Key Bridge in Baltimore remains at the center of the brewing legal battles 85 days after the ship hit the bridge. So far none of the approximately 22 crewmembers have been permitted to leave Baltimore and now lawyers for the plaintiffs including the City of Baltimore are asking the U.S. District Court to block the departure of the first crewmembers as part of an effort by the vessel’s operator to arrange for a replacement crew.

The Dali remains in Baltimore at the Seagirt terminal where she was moved after the bridge debris was removed last month. Work is ongoing on the salvage of the vessel removing more containers and debris, but the crew remains aboard nearly three months after the allision with the bridge.

Lawyers for the vessel’s operator, Synergy Marine and owners Grace Ocean informed the plaintiffs in an email on June 18 that eight of the crewmembers were scheduled to leave the vessel for return to their homes in India and Sri Lanka. The list consists of eight individuals, including three ABs, one ordinary seaman, an oiler, a fitter, a cook, and a general steward.

The plaintiffs are objecting citing an email from April that said they would be given notice and there would be provisions for interviews or depositions before any crewmembers left the ship. In the court filing, they argue that if these individuals are permitted to leave “claimants may never have the opportunity to question or depose them.”

The crewing company says these individuals' time is up and they are arranging for replacement crewmembers for the vessel. Further, they reported they inquired with the U.S. Coast Guard to waive CBP (Customs and Border Protection) restrictions to permit the crew to remain temporarily in the U.S. and it was refused. All the crewmembers have already been interviewed by the Department of Justice, the notice states, and there is no objection to their departure from the United States. The plan was to transfer the crew possibly as early as tomorrow, June 20, from the ship directly to the airport.

The plaintiffs asked for an emergency hearing now scheduled for June 20, and the judge ordered Grace Ocean and Synergy Marine “not to facilitate” the departure of any crewmembers. The court also instructed the United States not to deport the crewmembers before the hearing.

The court notes it is unclear if it can retain the crewmembers while also saying that there was no time for the opposing parties to be heard and seek relief. They also note the plaintiff’s lawyers cited minimal authority that supports the request.

In the past in lesser cases such as MARPOL violations, the U.S. has ordered crewmembers to remain in the United States to provide testimony. These waits can stretch into months or even a year or more despite objections from lawyers for the crewmembers. In this case, the lawyers for the crewmembers said they will advise the individuals to invoke the Fifth Amendment of the U.S. Constitution which provides the protections against self-incrimination (i.e. the right to remain silent).






Seamen's Church: Dali Disaster Highlights Crew Welfare Lesson Learned

The Dali has been refloated and removed, but the crew remain aboard (Courtesy U.S. Coast Guard)
The Dali has been refloated and removed, but the crew remain aboard (Courtesy U.S. Coast Guard)

PUBLISHED JUN 17, 2024 1:00 PM BY SEAMEN'S CHURCH INSTITUTE

 


The tragic allision of the Dali container ship with the Francis Scott Key Bridge in Baltimore highlights the often-overlooked humanitarian impact of maritime incidents and the mental pressures faced by seafarers. The first seafarer charity on the scene, the Seamen’s Church Institute (SCI), is advocating for increased support for affected crew members. The SCI team found a traumatized crew aboard the Dali and is urging leaders in maritime and regulatory bodies to consider the human impact when undertaking a presumably lengthy but necessary investigation.

The Rev. Mark Nestlehutt, president and executive director of SCI, emphasizes the importance of making swift decisions regarding the 21 crew members, including their return home and potential legal consequences.

“While the logistics of wreckage removal and ship movement are crucial, we must also prioritize the crew who have endured significant trauma since the accident,” he says. The crew have been deeply affected by the loss of six construction workers and deserve a measure of empathy and support.

“Imagining ourselves in their position helps us understand their constraints and the pressure they are under," he adds.

The 21 seafarers - 20 Indians and one Sri Lankan - are being well cared for by Synergy Marine, the vessel's management company. But despite receiving support they have been confined to the ship since March 26, unable to take any break away from the scene.

“The uncertainty they face about seeing their families again and the looming investigation are major stressors,” explains Mr. Nestlehutt. “With the final report potentially taking two years, consideration and clarity on their situation is important.”

Mr. Nestlehutt suggests that U.S. authorities, including the US Coast Guard, FBI, and National Transportation Safety Board, consider expediting decisions regarding the crew’s status, perhaps determining which crew members are essential to the investigation and allowing others to return home. "With some of their contracts ending over a month ago, these seafarers are now looking at extended stays on the vessel, and that can cause distress and impact mental health," he says. 

The COVID-19 pandemic underscored the detrimental effects of prolonged and extended vessel confinement on seafarers' mental health. Consequently, renewal of the crew’s visas and permitting non-essential members to take shore leave would offer much-needed relief. Currently, expired visas prevent them from stepping ashore in Baltimore, which exacerbates their predicament.

After the March 26 collision, SCI's proactive response included the deployment of chaplains trained in Critical Incident Stress Management within a week of the accident. Additionally, in the following weeks, SCI provided chaplain associates who speak Hindi and Tamil, ensuring that the crew received culturally and linguistically appropriate support.

The Dali disaster can be considered a call to action for the maritime industry and regulatory bodies to enhance their response protocols for seafarers in distress. By prioritizing their well-being and expediting necessary decisions, we can demonstrate our commitment to those who keep global trade moving, even in the face of adversity.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.


 

One Year After the Loss of the Titan, Accident Investigation Continues

OceanGate Titan
Courtesy OceanGate

PUBLISHED JUN 18, 2024 9:20 PM BY THE MARITIME EXECUTIVE

 


One year after the sinking of the experimental submersible Titan, the U.S. Coast Guard continues to investigate the cause of the small sub's implosion, which killed five passengers on board. 

In a statement Friday, the Coast Guard Marine Board of Investigation for the Titan tragedy said that it was still working with multiple partner agencies and stakeholders to understand the cause of the casualty. It plans to hold public hearings sometime between August and the end of December, with the date yet to be announced. 

“We’re grateful for the international and interagency cooperation which has been vital in recovering, preserving and forensically testing evidence from a remote offshore region and extreme depth,” said MBI Chair Capt. Jason Neubauer. “The MBI is committed to ensuring that we fully understand the factors that led to this tragedy in order to prevent similar occurrences in the future.” 

On June 18, 2023, the commercially-operated submersible Titan went missing near the RMS Titanic wreck site in the North Atlantic, about 800 nautical miles off Cape Cod. After a four-day search effort, contractors for the U.S. Coast Guard found the debris of the sub on the bottom, along with presumed human remains. The sub had suffered a sudden, catastrophic implosion, killing all five passengers on board. The victims included Stockton Rush, 61, the sub's owner; explorer Hamish Harding, 58; French subsea adventurer Paul-Henri Nargeolet, 77; businessman Shahzada Dawood, 48; and his son Suleman Dawood, 19.

A recovered component from the hull of the Titan (Courtesy USCG)

In the aftermath of the sub's loss, the anchor handler Horizon Arctic and an ROV from Pelagic Research Services scoured the bottom for evidence and recovered debris from the seafloor. The U.S. Coast Guard took custody of the wreckage and the recovered remains.  A vessel and ROV team from Phoenix International returned later in the year to recover the remaining debris.

The complexities facing the MBI investigation include the challenging location, the need to analyze the submarine's unusual carbon-fiber construction, and the jurisdictional questions created by the overlapping interests of five different agencies - the U.S. National Transportation Safety Board (NTSB), the U.S. Coast Guard, the Canadian Coast Guard, the Canadian Transportation Safety Board (TSB) and the Royal Canadian Mounted Police (RCMP). The USCG is the lead agency, with assistance from the U.S. Navy for site investigation.

Separately, the Coast Guard has confirmed that a "transcript" of the Titan's last voyage that circulated on social media in 2023 is wholly fake. "I’m confident it’s a false transcript," Neubauer told the New York Times. "Somebody did it well enough to make it look plausible."

The fake transcript does not correspond to the actual comms records that agencies retrieved from Titan's mother ship, the Canadian vessel Polar Prince. The legitimate communications logs are confidential, at least until the end of the MBI's inquiry. 

WWIII

Video Shows China Coast Guard Ramming and Threatening Philippine Soldiers

BRP Sierra Madre altercation June 17 2024
China Coast Guard servicemember threatens a Philippine soldier with an axe, June 17 (AFP)

PUBLISHED JUN 19, 2024 5:05 PM BY THE MARITIME EXECUTIVE

 

 

Two days after Chinese forces attacked a Philippine Navy resupply mission at Second Thomas Shoal, seriously injuring one Philippine servicemember, the first bystander footage of the altercation has emerged on social media. The imagery appears to depict the China Coast Guard employing much more aggressive tactics than in past encounters: in cell phone footage taken by Philippine personnel, Chinese servicemembers appear to repeatedly ram the two Philippine boats, forcibly remove their cargo, threaten the crew with axes and knives, and tow the vessels away. 

 

Newly-released photos also show damage to the Philippine Navy RHIBs, including smashed control systems on a helm console. 

The imagery also shows - for the first time - that the altercation occurred within feet of the grounded landing ship BRP Sierra Madre, a Philippine military outpost manned by an armed garrison.      

 

 In the fray, a Philippine servicemember lost a thumb, two officials told AP on condition of anonymity. The officials acknowledged that the China Coast Guard towed off two Philippine Navy boats and seized or dumped the contents - including firearms. Philippine Navy forces later recovered the boats in damaged condition. 

After the incident, the Philippines' defense and foreign affairs departments accused Chinese forces of "illegal and aggressive actions" at Second Thomas Shoal, including injuring personnel, damaging vessels, high-speed ramming, towing, and violating the UN Convention on the Law of the Sea. The Chinese government has denied any wrongdoing inside the Philippine exclusive economic zone, and has blamed the incident on Philippine forces.

"The People's Republic of China has once again attempted to provoke trouble in Ayungin Shoal. They clearly hope that the US will also be agitated to justify their false narrative that Washington really wants to go to war against Beijing," said Philippine Coast Guard spokesman Jay Tarriela, responding to Chinese claims. 

Defense analysts have framed the newly-aggressive approach as an intentional strategy, designed not to achieve a tactical objective, but rather to determine just how far the Philippines and its Western allies will let China push. 

"Make no mistake - this incident isn’t about who owns . . . Second Thomas Shoal," commented Australian maritime security expert Jennifer Parker. "This is very much about testing the new web of relationships in the region that are designed to deter China’s increased aggression."

Late Wednesday, the China Coast Guard released its own photos of the day's events, omitting the violent altercation next to BRP Sierra Madre. Through a state-owned media outlet, the CCG also published a photo of a previously-unknown Philippine supply vessel, which appears to have been armored to resist the CCG's water-cannon attacks. 

Image courtesy China Coast Guard (via state-owned media)

China claims the vast majority of the South China Sea as its own, including a large swathe of the Philippine exclusive economic zone. The Permanent Court of Arbitration in the Hague rejected China's sweeping claims in 2016, noting that Beijing's historically-derived assertions of sovereignty do not align with the UN Convention on the Law of the Sea. China has rejected the ruling and continues to insist that areas located hundreds of miles from the Chinese mainland - including features within the Philippine EEZ, like Second Thomas Shoal - belong to the Chinese government. 

 

Maritime Aid Pier Installed in Gaza for the Third Time

A truck rolls down the floating causeway in modest swells, June 11 (U.S. Army)
A truck rolls down the floating causeway in modest swells, June 11 (U.S. Army)

PUBLISHED JUN 20, 2024 9:16 PM BY THE MARITIME EXECUTIVE

 

The temporary pier for Palestinian relief aid has returned to its beach site in Gaza once more, defying rumors that it might soon be canceled. 

Beginning in March, the U.S. military began deploying a complex cargo delivery system called Joint Logistics Over The Shore (JLOTS) to bring much-needed food aid into Gaza. This capability consists of a temporary pier, an offshore receiving station and a flotilla of landing craft. It has proven effective in previous deployments, like the response effort for the Haitian earthquake of 2010.

The Pentagon expected that the JLOTS system could handle up to 40 percent of Gaza's aid needs, but the operation has been beset by repeated problems - many related to its narrow operating window and its unsheltered location. Elements of the system are designed for service in Sea State 3 and below, and moderate swells are too rough for its capabilities.

The floating structure broke up in rougher weather in late May and had to be removed to the nearby port of Ashdod to be repaired. Last week, it was removed from the beach again in order to avoid more damage from wave action, and has now returned to service for the third time, according to Central Command.

At about 0900 hours Wednesday, U.S. military personnel reanchored the pier on the beach; CENTCOM emphasized that "at no time during this event did U.S. troops enter Gaza." On Thursday, maritime deliveries resumed, and trucks began ferrying aid cargoes down the pier and onto shore. A record 650 tonnes of food and other goods were delivered during the day, the command said. 

Taken together with previous deliveries, the maritime corridor has transferred 4,160 tonnes of cargo to a marshaling area on the beach, where it will remain until further notice. Aid NGOs stopped distributing the food from the maritime corridor after a large-scale Israeli military operation on June 8, and the land-side half of the operation has been suspended pending a security review. The overall security situation in Gaza has deteriorated significantly over the past several weeks, and armed gangs have disrupted food distribution efforts within the territory.

Even if the aid were delivered to recipients, the maritime transport volume falls short of target, amounting to an average of roughly 120 tonnes per day since the causeway entered service in mid-May. This amounts to eight typical truckloads per day, roughly five percent of the goal.

Many aid NGOs and U.S. political leaders have called for aid resources to be redirected to cross-border trucking instead, leveraging commercial port infrastructure in Egypt and Israel. 

"From a purely cost-based analysis, investing in a pier off the coast of Gaza is an inefficient use of our defense budget," argued  Rep. Nancy Mace (R-SC) last week. "The pier project has proven to be a logistical nightmare, with significant challenges and costs far outweighing any potential benefits."

Mace has sponsored a successful amendment to the annual defense spending bill that would ban any funding for a pier in Gaza next fiscal year. But given the challenges, the project could be suspended by the end of the month, according to rumors from Washington. 

Pentagon Press Secretary Maj. Gen. Pat Ryder (USAF) pushed back on these reports in a press conference Thursday. "While it's always been our intention for the pier to be a temporary solution as part of the broader international effort to surge humanitarian assistance into Gaza to meet the urgent needs of the Palestinian people, we have not established an end date for this mission as of now," Ryder said. 

 

Piracy Warning for Asia with Crews Being Tied Up and Stores Stolen

piracy Asia
Warnings cite pirates approaching small boats with several incidents of crewmembers being tied up and stores stolen (file photo)

PUBLISHED JUN 19, 2024 5:26 PM BY THE MARITIME EXECUTIVE


 

Monitoring agencies are issuing warnings over increased piracy activity specifically where boarders have come onto the vessels and tied up crewmembers while stealing stores. The regional information sharing operation ReCAAP is again highlighting the areas around the Singapore and Malacca straits while also issuing a special report after a dramatic increase in incidents near Chattogram Anchorage and Kutubdia island in Bangladesh.

Two incidents occurred in recent days near Singapore with ReCAAP highlighting that there has been a total of 18 reports since January 2024 in the areas around Singapore. There have been multiple warnings of low level incidents of boarding and theft in the Singapore Strait for the past few years, but in most cases, the perpetrators flee when discovered.

In the most recent incident on June 11, ReCAAP is warning that two crewmembers were tied up aboard the bulker Santa Regina (82,000 dwt). Registered in Panama and operated by Mitsubishi Ore, six perpetrators came aboard armed with knives while the vessel was at the western side of Singapore transiting from the Malacca Strait into the Singapore Strait. There were no injuries among the crew but engine spares were stolen.

A chemical tanker underway in the Singapore Strait off Batam also reported to the ICC Commercial Crime Services that it was approached by a small boat on June 15. The crew sighted a dimly lit boat near the port bow and altered course, but at a distance of 1.5 nm, the boat suddenly started flashing lights, increased speed towards the tanker, and made an approach in an attempt to come alongside. The tanker took evasive maneuvers and notified authorities. Seeing a patrol boat coming to assist the tanker, the boat aborted the approach and moved away.

ReCAAP is reporting similar incidents occurring since the start of the year near Bangladesh, including the boarding of the Maersk Chattogram (37,157 dwt) where ship stores were stolen in April. Two of the incidents, on May 3 aboard the chemical tanker Largo Eden (49,999 dwt) and the tanker Gas Courage (54,999 dwt) involved interaction between the boarders and the crew. The watchman aboard the Gas Courage was tied up and ship stores stolen. Nine individuals however were apprehended by the Bangladesh authorities who responded immediately. Similarly, the crew aboard the Largo Eden found the store watchmen tied up. They reported that six perpetrators boarded the ship broke into the paint store locker and stole items. They, too, were apprehended, and the material was recovered for the ship.

The warning advises that there have been nine incidents between January and May this year near Bangladesh versus just one in the entire year of 2023. 

While the danger continues in those areas, ReCAAP reports due to the successful efforts of the Philippine Coast Guard the threat level for crew abductions in the Sulu-Celebes Sea and near Eastern Sabah is being reduced. The threat level was shifted to Moderate Low after continuous military operations led to the dismantling of the support base and neutralizing the piracy groups in the Sulu archipelago.

 

New Zealand Interisland Ferry Goes Hard Aground in Latest Incident

ferry aground
Aratere (right) veered off course and grounded (Rachel Boyack MP on X)

PUBLISHED JUN 21, 2024 1:51 PM BY THE MARITIME EXECUTIVE

 

 

The RoRo ferry Aratere went hard aground today departing Picton on New Zealand’s South Island for its four-hour run across Cook Strait. It was the latest embarrassment for the InterIslander service operated by KiwiRail.

The company acknowledged in a statement that the vessel is hard aground after what they said was a “steering failure,” on the 25-year-old vessel. The authorities said there was no immediate danger and that no oil leaks or water ingress had been observed.

The vessel which is 18,000 gross tons departed Picton earlier than scheduled for its fourth and final run of the day. It started the day with a scheduled 0530 departure from Wellington on the North Island, followed by 1100 from Picton, and 1630 from Wellington. The company reported the vessel which carries rail cars and trucks was making a freight-only run which had been due to reach the North Island around 0200.

Around 2145 tonight about a half hour after departing the berth, the Aratere veered off course and became stuck approximately 1.5 nautical miles north of Picton in Titoko Bay. Weather conditions were calm but reports from onboard said the eight commercial drivers aboard were awakened and told to put on lifejackets and to standby at a muster station. The vessel also has 39 crewmembers aboard.

The Coast Guard and local emergency services responded but there were no reports of injuries. The Picton Harbormaster was reported to be aboard working with the company on a salvage plan. Low tide was at 0220. The company was reporting that the vessel would be refloated depending on tidal conditions. High tide will be after 0800 on Saturday morning. Later reports from New Zealand said the drivers and crew spent the night aboard the ferry, but plans to refloat the vessel were being delayed so that divers can inspect the hull for damage.

 

 

 

Concerns were raised because the vessel is the only one of the fleet of three capable of transporting rail cars. It provides a vital cargo service connecting the islands.

KiwiRail has been locked in negotiations with the government over plans for new ferries to replace its aging fleet. An order had been set in 2021 with Hyundai Mipo Dockyard in South Korea to build new ferries but the government later withdrew from the promised financing. In February 2024, the companies said they were negotiating the end of the building contract.

Government officials have been highly critical of KiwiRail and the operation of the InterIslander ferries. Transport Minister Simeon Brown is being quoted in the media this week saying the government has been “highly unimpressed” with KiwiRail’s maintenance of the Interislander ferry fleet.

The Aratere has had a troubled career including breakdowns during its delivery run from its Spanish shipbuilder to New Zealand. It has multiple engine failures, another steering failure 20 years ago, and lost a propeller after breaking a drive shaft a decade ago. The vessel was rebuilt and lengthened by 98 feet (30 meters) in 2011 to its current length of 492 feet (150 meters). A year ago in February, the vessel lost power and was drifting in the Cook Strait due to what was reported to be a power failure. On the company’s schedule page, it notes currently, “Minor change to Aratere timetable: From Monday 27 May to approximately 29 July due as we are waiting for a gearbox part to be delivered.”

New Zealand prosecutors at the beginning of 2024 said they were filing charges against KiwiRail for another power failure incident in 2023. They accused the company of using out-of-date parts and failing to replace parts that were long after their recommended dates. 

 

Genting Awards Chinese Yard Wison $1B Order for New FLNG

Wison's yard at work on the Congo FLNG project for Eni (file image courtesy Wison)
Wison's yard at work on the Congo FLNG project for Eni (file image courtesy Wison)

PUBLISHED JUN 21, 2024 8:45 AM BY THE MARITIME EXECUTIVE

 

Malaysian conglomerate Genting Bhd has signed a contract with Chinese shipyard Wison New Energies to build an FLNG for its Teluk Bintuni offshore natural gas field. The $1 billion plant will be the first of its kind in Indonesia and the ninth FLNG ever built. 

The floating LNG plant will have a capacity of 1.2 tonnes per annum, one-third the output of Shell's category-defining Prelude LNG. Wison plans to deliver the unit in just over two years' time; Genting began buying long lead time materials for the unit last September, well before awarding the contract.  

If construction proceeds as expected, the plant could be installed and producing as early as the third quarter of 2026. 

The plant will capitalize on Genting's exploration successes in the Kasuri Block, off the coast of West Papua. The block's Asap, Merah and Kido gas reservoirs will feed up to 230 million cubic feet per day to the FLNG unit for liquefaction, and will send another 100 million cubic feet per day to an onshore ammonia/urea plant. 

"We have had a lot of very significant success on this block. We drilled ten wells, all ten wells have encountered hydrocarbons," Genting President and Chief Operating Officer Tan Kong Han told Reuters. 

Genting is still in talks with potential offtakers for the FLNG's production. 

Wison has secured a series of FLNG contracts in recent years, including Eni's Tango and Congo FLNG units and two larger 3.0 mtpa units for Nigerian customers, currently in the front end engineering and design phase. It has also secured a design and engineering contract from Delfin Midstream for FLNG units for a Gulf of Mexico project. 
 

 

Russia Transshipping Fish Through Norway to Avoid Dutch Shipping Ban

Russian fishing vessel transferring catch
Russian's Belomorye alongside the Norwegian Silver Copenhagen for the transfer in Svalbard (Kystvakten)

PUBLISHED JUN 21, 2024 2:59 PM BY THE MARITIME EXECUTIVE

 

 

There has been extensive reporting on Russia’s use of transshipping with ship-to-ship transfers of oil in secluded locations, but now comes a report from the Norwegian public broadcaster NRK of ship-to-ship transfers of frozen fish. While pointing out that it is technically not a violation of the EU sanctions against Russia, the action appears to be taking place to avoid a Dutch ban on Russian shipping.

The fish, likely cod from the Barents Sea, have become caught in political issues and geopolitics with the fears sweeping across Europe. The Dutch banned Russian-flagged vessels with the report saying it was due to a fear of spying and espionage. They also cite Russia’s military doctrine pronounced after the 2022 invasion of Ukraine that would permit the use of civilian vessels by the military.

The Russian company Norebo has the highest fishing quotas for cod in the Barents Sea NRK reports but is facing problems with the export and delivery of its catch. The reports are that its vessels are being blocked from the port of Eemshaven in the Netherlands. The company had been exporting to the Netherlands with the Dutch being the largest market for its catch. NRK says over 130,000 tonnes of Russian seafood was landed in the Netherlands in 2023.

The fishing vessel Belomorye had been at sea for more than 16 days without landing its catch and was unable to proceed as it would normally have to Eemshaven. Instead, NRK reports the vessel was sighted in a deserted fjord on Svalbard last month.

The Norwegian Coast Guard was monitoring the activity and confirmed that it inspected the vessel for any potential violations in May. The Belomorye was seen in a photo released by Kystvakten (the Norwegian Coast Guard’s account) alongside the Norwegian freeze ship Silver Copenhagen.

According to the report, 2,000 tonnes of frozen fish were transferred ship-to-ship from the Russian vessel to the Norwegians. The vessel is operated by a Norwegian company Silver Sea which reports it has a 20-year relationship with Norebo. They contend that everything was being done legally. They received the catch and transferred it to the customers in the Netherlands.

Officials confirmed that fish are not part of the EU sanctions. Dutch authorities also confirmed their position that the fish were a legal import and had no problems landing it from the Norwegian ship after a delay of several weeks. 

Russia is reported to have increased its fish exports in 2023 by 12 percent. Total exports were 2.2 million tons.


EU Imposes Small-Scale Sanctions on Russian LNG Exports

A Novatek-chartered icebreaking LNG carrier (foreground) transships cargo to a foreign-flag conventional LNG carrier at Zeebrugge (Fluxys file image)
A Russian LNG carrier (foreground) transships Russian cargo to a foreign-flag LNG carrier (background) for re-export at Zeebrugge (Fluxys file image)

PUBLISHED JUN 20, 2024 6:01 PM BY THE MARITIME EXECUTIVE

 

The EU's member states have agreed to roll out the bloc's first-ever sanctions on Russian LNG, though the impact on trade volume is expected to be minimal.

Diplomats with inside knowledge of the talks say that the 14th package of EU sanctions will ban Russian LNG re-exports from European ports. Novatek uses ports in France and Belgium to transload and re-export LNG from its Yamal project to markets overseas, like China. The use of EU infrastructure allows Novatek to shorten the voyages of its unique icebreaking LNG carriers, freeing them up for more trips to and from Yamal.

However, EU-based transloading and re-export activity represents a small fraction of Russian LNG shipping, according to analysts at Atlas Network. European utilities will still be able to purchase and import Novatek's Russian LNG for local consumption, continuing a trend that began when Russian pipeline gas was cut off in 2022. The likely outcome, according to Atlas, is that the small fraction of Russian LNG that used to be re-exported will now remain in Europe. In this scenario, Novatek and its trading partners would likely use locational swap agreements with non-Russian LNG producers in order to fulfill contractual obligations for re-export cargoes. 

The package also bans European financing for three Russian LNG export terminal projects, diplomats told Reuters. It also adds more Russian "dark fleet"s tankers to the list of EU-sanctioned vessels.  

The details of the sanctions agreement have not yet been released, but EU leaders said that the overall package would have a substantial impact. It is the EU's 14th set of Russian sanctions measures since the invasion of Ukraine in 2022. 

"This hard-hitting package will further deny Russia access to key technologies," European Commission President Ursula von der Leyen said in a statement. "It will strip Russia of further energy revenues and tackle Putin’s shadow fleet and shadow banking network abroad."

"This package provides new targeted measures and maximizes the impact of existing sanctions by closing loopholes," the Belgian presidency of the European Council said in a brief statement. 

The package omits a long-discussed element that would have required the overseas subsidiaries of EU companies to stop re-exports of their goods to Russia. Moscow's weapons developers have had few problems gaining access to Western high-tech components for missile guidance systems, navigation equipment and other key defense technology, in part because sanctions can be easily evaded by routing shipments through third countries like Kazakhstan or China. The proposed limit on European-owned subsidiaries would have closed a loophole, but the German government objected, fearing that it would damage small German businesses. Ultimately this measure was dropped, diplomats told Euractiv and Politico. 

Friday, June 21, 2024

Posidonia 2024: Decisions, Decisions, Decisions

UGS
Courtesy Posidonia

PUBLISHED JUN 17, 2024 1:37 PM BY DIMITRI G. VASSILACOS


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Posidonia 2024: once more, the global maritime community gathered in Athens to celebrate the shipping industry’s achievements and discuss its outlook (and party incessantly) amid extremely healthy markets across all segments. Smiling faces dominated all events, though there was a clear understanding that the colossal liquidity amassed during the last few years - even after the significant debt prepayments - should stay largely intact within each respective company’s balance sheet.

But the industry is also perplexed: Where should all this liquidity be invested? Granted, it is better to be perplexed when the Clarksea index hovers around $27,000 rather than when it is stuck at $7,000, but the reasons to worry about the day after are very good indeed.

Simply put, the investment strategy seems largely dominated by the decarbonization process. But the path to 2050 net-zero level is not only extremely narrow, but also needs to be coordinated holistically. No single industry, shipping included, is an island, and no single industry can become a net-zero contributor on its own. Progress in shipping depends on advances in other sectors, with shipping being on the receiving end rather than on the controlling one.

And here lies the first challenge: global decarbonization is progressing dramatically slower than people may think. For every Denmark-like success, energy consumers elsewhere manage to more than counter it by increasing their fossil fuel consumption. IEA’s forecast for coal consumption in 2050, based on current policy settings (below), barely brings it back to about 2000 levels. In this projection, natural gas and oil consumption remain at about today’s levels for decades to come.

If we want to stick to the 2050 zero carbon goal, we need annual investment in clean energy of about $10 trillion a year. Every year [1]. Until 2050. This represents about 10% of the current global GDP, maybe 7.5% if growth is taken into consideration. This is a colossal amount of money to be spent in an internationally coordinated way. One can see why one could be sceptical of the chances of the world getting there within schedule.

The second problem lies with the financiers: there is certainly enough capital around to finance all decent shipping projects (though it is still important to pick the right financing counterparty). But despite some modest initiatives, financiers do not seem overly keen to finance the excess cost of new technology, or to offer materially more competitive terms to the shipping companies that are brave enough to be at the sharp end of the technological spectrum, unless there are significant and tangible benefits from the expected cashflows.

Which leads to the third problem: the market has neither universally recognized the value of most new technologies nor -even more critically - decided how to split it between the charterers and the owners (not to mention that no one has asked the end consumers how much they are willing to contribute).

These three challenges significantly affect the pace of change both at a global level and at the microcosm of shipping, leaving investors in a trilemma:

  • Do they “bite the bullet” and order some expensive newbuild vessels (adopting technically and commercially untested technologies), deliverable just in time for the Los Angeles Olympic Games?
  • Do they focus on currently available vessels and use the healthy markets’ revenues to finance either the acquisition of more modern ones or the enhancement of the ones they already own, to keep abreast of the current regulations?
  • Do they simply keep milking their existing vessels and wait for a regulatory arbitrage, expecting that “something’s got to give” and hoping that that “something” will be the pace of implementation of these regulations?

Most people are aware of - and agreeable to - the strategy of the guy who wore running shoes for a savannah trip (“I don’t need to outrun the lion; I just have to outrun you!”). I am not sure whether everyone agrees on what the “running shoes” in this case are. In fact, different shipping companies may come to different conclusions, each one relevant in their case. What is for sure is that different pairs of running shoes will lead to significantly different outcomes, especially since no one knows yet what kind of terrain the shipping industry will need to run on. Or even if it will have to run, jog or simply walk.

Dimitri G. Vassilacos is a Partner at Ship Finance Solutions (SFS), a boutique financial consulting firm specializing in the shipping sector. Prior to that, he held a variety of positions during a 20-year-long career in the banking sector, including Managing Director & Head of Greek Shipping at Citibank and Manager of the Shipping Division at National Bank of Greece.

[1] McKinsey and Company (2022). The Net Zero Transition: What It Would Cost, What It Could Bring.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.