Scrubber debate heats up as EC calls on IMO to restrict their use

By Mike Wackett

The pro-scrubber Clean Shipping Alliance 2020 has strongly criticized the EC for urging the International Maritime Organization (IMO) to restrict the use of open-loop exhaust gas cleaning systems (scrubbers) in ports around the world. But vessels fitted with scrubbers are in high demand and at least a third of newbuild vessels will have them, enabling the ships to continue to consume cheaper, higher-sulphur fuel. Under its 0.5 per cent sulphur cap on fuel used by ships from 1 January 2020, IMO currently approves the use of both open-loop scrubbers, where wash water is discharged back into the ocean, and closed loop systems, where the water is retained for disposal at a suitable port facility. The EC has submitted an “evaluation and harmonization” proposal for consideration at IMO’s Marine Environment Protection Committee (MEPC 74), due to meet in London in May. (more…)

Shippers must share the financial impact on carriers of IMO 2020 compliance

By Mike Wackett in Long Beach

The implications for carriers and BCOs of the IMO low-sulphur regulations that come into force in less than ten months have dominated February’s JOC TPM Conference in Long Beach. Normally the annual event, this is the 19th, marks the start of annual contract rate negotiations on the transpacific, but this year the spectre of IMO 2020, and  how the greener fuel is to be paid for, has overshadowed all other topics. Shippers have admitted to not trusting the carriers, which know they must recover these costs, which could add up to $15 billion a year for the industry. (more…)

Logistics set up for ‘a fall of catastrophic proportions’ in a no-deal Brexit

By Alexander Whiteman

Panic is setting in among UK logistics operators as the country approaches its departure from the European Union. With just 17 working days between now and the scheduled 29 March withdrawal, industry associations are expressing “deep concern” at the lack of preparedness. The British International Freight Association (BIFA) has warned that logistics operators may find themselves liable for difficulties arising from a no-deal withdrawal. It said: “Given the likelihood of customs clearance delays following a hard Brexit, it could be argued that such delays are both expected and thus could be avoided.” (more…)

Celebrating 30 years of compensating victims of oil pollution

By Anne Legars

After the Torrey Canyon (1967), Arrow (1970) and Irving Whale (1970) oil pollution disasters, the public demanded greater accountability for polluters whose ships caused oil pollution. At the time, there was no adequate mechanism to ensure victims of oil pollution would be compensated. This led to the creation of the Marine Pollution Claims Fund (MPCF), which was essentially a fund of last recourse.

In 1989, legislative amendments changed MPCF into the Ship-Source Oil Pollution Fund (SOPF), making it a fund of first and last recourse for the victims of oil pollution damage from ship sources in Canadian waterways (including Canada’s Exclusive Economic Zone), and aligning the Canadian regime to international conventions. (more…)

Algoma Central announces resignation of CEO and names replacement

Algoma Central Corporation announced that Ken Bloch Soerensen has resigned as President and CEO to spend more time with his family in Europe. Gregg A. Ruhl, the current COO, has been named President and Chief Executive Officer, effective immediately.

Mr. Soerensen joined Algoma in April 2015 and was charged with redefining the strategic focus of the Company to include growth markets beyond North America. He led the development of the global short sea business and spearheaded the creation of the NovaAlgoma partnership. During his tenure, Algoma’s international business grew to represent nearly one half of the revenue streams in which the Company participates. (more…)

The cost of hijacking and corruption – Proceedings of 2018 BLG Annual Law Seminar

The cost of hijacking and corruption – Proceedings of 2018 BLG Annual Law Seminar

By Brian Dunn

The cost of hijacking and corruption

In the film Captain Phillips based on the 2009 hijacking by Somali pirates of U.S.-flagged MV Maersk Alabama, the character played by Tom Hanks is taken hostage for a ransom that was never paid after a tense standoff. Maersk Alabama was also the first American cargo ship to be hijacked in two hundred years.

While hijacking is clearly the most dangerous type of situation facing shipping companies in some parts of the world, there are less severe incidents which still have to be dealt with on a daily basis. One of the most common is bribes to officials at certain ports who can make life difficult and costly if shippers don’t cooperate. (more…)