Please Note
I appear to be back in office ...... a little tooooo early.
Certainly, the rest of the world is still on holiday !!
Regards
Snooper
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THE ZAC SUTHERLAND UPDATE
Zac's Blog
My name is Zac Sunderland and I am 17 years old. I departed 14th June 2008 from Marina del Rey, California in an attempt to become the youngest person to circumnavigate the world alone by yacht.
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Further tales from our long haired solo sailor !
Photo : Jen Edney,
Caption : Well, that be ME !!!
Tuesday, January 6, 2009
Weather Watching & Waiting
Everything is going well here in Durban. The repairs are getting finished and I’m still waiting for a good weather window for the next leg to East London. The trip to EL is only about 250 miles and I should be able to do that in 2 days easily. The problem comes when a storm from the southern ocean rips up the coast changing the wind direction and pushing the swells against the current making massive breaking swells.
So it is extremely important to get a good weather window which will hopefully be here by the end of the week. I’ll be going up the mast tomorrow to finish up the rigging work. I’ve been talking with the local sailors and comparing notes with my other advisors. I'm looking forward to getting out to sea again and making my way home.
Cheers,
Zac
posted by Zac at 2:28 PM
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Visit www.zacsutherland.com
YouTube Videos http://www.youtube.com/zacsvideos
Blog http://www.zacsunderland.com/blog/
Email zacsworldadventure@yahoo.com
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Mike Perham aged 16, the youngest person to sail across the atlantic solo now has his eye's on an even more adventurous challenge.
To become the youngest person to sail around the world solo in an open 50 racing yacht.
A Wet but Happy Mike - 07 01 09
The Doldrums have been pretty kind to me so far; my passage south has been nice and fast, which has been fantastic. But now it seems as though they've had enough. The change in the weather started at around four in the afternoon, when the first few big fellas decided to join me on my way.
Three squalls hit, one after the other, with gaps of about twenty minutes between them. They pummelled Totallymoney.com with rain and wind and then span the wind direction all the way round to the south. A not very happy and very wet Mike took three reefs in and ditched the staysail until finally, we were making slightly more relaxed progress.
There were ropes all over the cockpit in a huge mess and the gennaker was still up in the rig, swinging about merrily.
‘Oh well, could be worse!’ I told myself. Around an hour later the wind dropped back off to twenty knots and I needed the Solent up to keep on moving at a reasonable pace.
Right now, as I write this, I'm being hunted by a seriously mean squall. It's around eight miles wide, and is bearing down pretty fast. If there's one thing I don't like when I'm sailing it's lightning. And this squall is full of it! Huge orange and white flashes lighting up the whole night sky for split seconds at a time.
Sailing in this area really keeps you on your toes, that's for sure. No boredom in Mikeville, just full-on soakings at the moment. Unless I get held up I'm pretty sure I'll be at the equator within two days and out of here.
Visit : http://www.totallymoney.com/sailmike/
Blog : http://www.totallymoney.com/sailmike/?cat=5
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First View – CREST DIAMOND
Flying the Singapore flag, the offshore supply tug CREST DIAMOND (1,678-gt, built 2007) was one of many similar visitors at Cape Town during 2008.
Picture by Aad Noorland
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Beyond Markets and Economy, Geopolitical Tensions Will Lead Energy Cost in 2009
Wednesday, 07 January 2009
While most forecasters expect oil to remain in the $50 to $60 range for 2009, the world’s oil supply is no less vulnerable—and perhaps even more susceptible—to geopolitical forces than it was before the financial meltdown. Last week’s upturn in oil prices were attributed to Israeli attacks in Gaza, a natural gas dispute between Russia and Ukraine, and OPEC’s announced production cuts. Vulnerabilities are most prevalent in the world’s six major oil transit chokepoints—where the threat of terrorist attack, theft from pirates, political unrest, and shipping accidents post real dangers. More than 40 billion barrels of oil are shipped every day along these narrow channels. A single incident in one of these locations could immediately wake American consumers up from the current lull in prices—and disrupt a sense of complacency about the real costs of filling up our cars and trucks.
Strait of Hormuz
The Strait of Hormuz is by far the world’s most important chokepoint with an oil flow of 16 to 17 million barrels per day—roughly 20 percent of oil traded worldwide. At its narrowest point the Strait is 21 miles wide, and the shipping lanes consist of two-mile-wide channels. The majority of oil exported through the Strait of Hormuz travels to Asia, the United States and Western Europe. On average, 15 crude oil tankers pass through the Strait of Hormuz every day.
The Strait of Malacca
The Strait of Malacca, linking the Indian and Pacific Oceans, is the shortest sea route between the Middle East and growing Asian markets. At its narrowest point, Malacca is only 1.7 miles wide, creating a natural bottleneck—as well as potential for collisions, grounding, or oil spills. Recent reports by the International Chamber of Commerce show that piracy, including attempted theft and hijackings, is a constant threat to tankers in the Strait of Malacca.
The Suez Canal
The Suez Canal is located in Egypt, and connects the Red Sea and Gulf of Suez with the Mediterranean Sea. Oil shipments from the Persian Gulf travel through the Canal primarily to European ports, but also to the United States. More than 3,000 oil tankers pass through the Suez Canal annually. Rampant piracy off Somalia's coast has recently hit revenues at the Suez Canal. Shippers are avoiding the canal following the capture by Somali pirates of a Saudi Arabian supertanker loaded with $100 million worth of oil in November 2008.
The Strait of Bab el-Mandab
The Strait of Bab el-Mandab is a chokepoint between the horn of Africa and the Middle East, and a strategic link between the Mediterranean Sea and Indian Ocean. It is located between Yemen, Djibouti, and Eritrea, and connects the Red Sea with the Gulf of Aden and the Arabian Sea. In 2006, an estimated 3.3 million barrels per day flowed through this waterway toward Europe, the United States, and Asia. The Strait is 18 miles wide at its narrowest point, with two 2-mile-wide channels for inbound and outbound shipments. Bab el-Mandeb was the site for of a naval blockade of Israel by Egypt in the 1973 Yom Kippur War.
The Turkish Straits
The Bosporus Strait is one of the busiest and most dangerous chokepoints in the world. The 17-mile long waterway located in Turkey supplies Western and Southern Europe with oil from the Caspian Sea Region. In 2006, an estimated 2.4 million barrels per day of mostly crude oil flowed southbound through this passageway. Only half a mile wide at its narrowest point, the Turkish Strait is one of the world's most difficult waterways to navigate due to its sinuous geography. With 50,000 vessels, including 5,500 oil tankers, passing through the straits annually it is also one of the world’s busiest oil routes.
The Panama Canal
The Panama Canal is an important route connecting the Pacific Ocean with the Caribbean Sea and Atlantic Ocean. A half-million barrels per day of crude and petroleum products were transported through the canal in 2006. The Canal is 50 miles long, and only 110 feet wide at its narrowest point, called the Culebra Cut. The Panama Canal is not a significant route for US petroleum imports, but like all important thoroughfares, closure of the Panama Canal would greatly increase transit times and costs adding over 8,000 miles of travel.
Makis Theodoratos, Hellenic Shipping News
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31115&Itemid=94
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SA port statistics for 2008
The calendar year January – December 2008 saw reduced overall growth in cargo handled at the country’s seven commercial ports as compared with growth of previous years. Including container traffic by calculated weight (13.5 tonnes per average TEU) the total cargo handled by all seven ports amounted to 237.733 million tonnes (2007 – 233.441Mt), an increase of just 1.84% over the previous year.
This trend is reflected across most of the ports, although East London coming off a low base managed a healthy 33% increase in containers handled for the year just past.
Container volumes at all ports for 2008 topped 3.9 million TEU (2007 – 3.7m TEU), which is a 4.76% improvement on the previous year. It is doubtful that the decrease in cargo volumes overall should be attributed to the global economic downturn as this occurred late in the year. Total port volumes were affected by a decrease in coal exports through the port of Richards Bay. The latter is the result of several factors, including the inability (or unwillingness) of mines to produce coal for export due to a number of factors, including severe weather conditions (waterlogged open cast mines) and low export prices early in the year. The surge in demand for domestic coal, principally by the electricity utility Eskom, was also a key factor. To some extent recurring derailments along the Richards Bay coal line will also have affected exports.
Once again it should be stressed that the figures reflected here are volume figures and not financial indications of earnings per port, which would reflect completely different results according to commodity types and volumes handled at each port.
In terms of this exercise however the importance of including containers measured by weight can again be shown with the port of Cape Town. Without including containers by weight Cape Town is shown as having handled a total of 3.205 million tonnes - whereas when containers are included this reaches 13.566Mt.
By comparison Port Elizabeth handled 5.427Mt of cargo without containers (over 2 million tonnes more than Cape Town) but when adjusted to include containers Port Elizabeth’s total volume increased to 11.150Mt, about 2.4Mt less than Cape Town.
As a result of including containers by weight (as was done by historic port statistics until quite recently) the total volume handled by the port of Durban (general cargo including containers) approaches close to the tonnage handled by Richards Bay (mainly export coal and other minerals).
Including the adjusted figure for containers, the respective ports handled the following:
Cargo handled by tonnes
Richards Bay 84.660 million tonnes (2007 – 84.572 Mt)
Durban 77.072 Mt (2007 – 75.353 Mt)
Saldanha Bay 43.687 Mt (2007 - 43.687 Mt)
Cape Town 13.566 Mt (2007 – 14.396 Mt)
Port Elizabeth 11.150 Mt (2007 – 11.231 Mt)
East London 2.758 Mt (2007 – 2.400 Mt)
Mossel Bay 1.995 Mt (2007 – 1.802 Mt)
Total cargo handled all ports 237.733Mt (2007 – 233.441Mt) + 1.84 %
Containers measured by TEUs
(TEUs include Deepsea, Coastal, Tranship and empty containers)
Durban 2,642,165 TEU (2007 – 2,479,232) + 6.57 %
Cape Town 767,501 (2007 – 764,005 + 0.45 %
Port Elizabeth 423,885 (2007 – 422,846) + 0.21 %
East London 57,418 (2007 – 42,986) + 33.57 %
Richards Bay 9,350 (2007 – 4,021)
Total containers handled 3,900,319 TEU (2007 – 3,723,090) + 4.76 %
Ship Calls
Durban: 4,608 vessels 105.713 million gt (4,608 vessels 105.713 million gt)
Cape Town: 3,025 vessels 47.558m gt (3,025 vessels 47.558m gt)
Port Elizabeth: 1,309 vessels 30.312m gt (1,309 vessels 30.312m gt)
Richards Bay: 1,648 vessels 58,039m gt (1,648 vessels 58.039m gt)
Saldanha: 470 vessels 26,517m gt (470 vessels 26.517m gt)
East London: 307 vessels 8.435m gt (307 vessels 8.435m gt)
Mossel Bay: 1,785 vessels 3.220m gt (1,785 vessels 3.220m gt)
Total ship calls in 2008 12,884 vessels 288.820-million gt
- source NPA with adjustments by Ports & Ships to include container weights
SA port statistics for December 2008
Port cargo figures for December 2008 are now available, courtesy of Transnet National Ports Authority.
South Africa’s seven ports showed a considerable decrease in total cargo tonnage handled against the previous month, totalling 18.150 million tonnes compared with 21.692mt for November 2008. However this decrease was to be expected with December month being relatively quiet compared with the preceding months. This can be seen in the drop in containers handled through the country’s terminals, 278,749-TEU compared with 354,248-TEU in November.
A more accurate picture can be made by comparing December year on year for 2008 versus 2007, which shows total volumes at all ports was roughly the same while containers handled decreased slightly in 2008 for that month. December 2007 statistics are available HERE
As is customary the figures shown in this report reflect an adjustment on the overall tonnage to include containers by weight – this is necessary because Transnet NPA measures containers in terms of the number of TEUs and not by weight - for which PORTS & SHIPS makes an estimated weight adjustment of 13,5 tonnes per TEU to reflect estimated tonnages. This figure is considered on the conservative side with 14 tonnes or even more being a more realistic figure in view of the increasing quantity of bulk cargo which is now being handled in containers.
Figures for the respective ports during December 2008 were (with November figures shown bracketed for comparison):
Cargo handled by tonnes
Richards Bay 7.490 million tonnes (Nov 7.888Mt)
Durban 5.762 Mt (Nov 6.806)
Saldanha Bay 2.969 Mt (Nov 4.571)
Cape Town 0.984 Mt (Nov 1.105)
Port Elizabeth 0.608 Mt (Nov 0.924)
Mossel Bay 0.198 Mt (Nov 0.185)
East London 0.139 Mt (Nov 0.210)
Total monthly cargo in December 18.150 million tonnes (Nov 21.692 Mt)
Containers (measured by TEUs)
(TEUs include Deepsea, Coastal, Transship and empty containers all subject to being invoiced by NPA)
Durban 192,594 TEU (Nov 245,048)
Cape Town 56,615 (Nov 62,697)
Port Elizabeth 26,565 (Nov 41,268)
East London 2,747 (Nov 5,076)
Richards Bay 228 (Nov 159)
Total containers handled during December 278,749 TEU (Nov 354,248)
Ship Calls for December
Durban: 347 vessels 8.766m gt (Nov 407 vessels 10.430m gt)
Cape Town: 273 vessels 4.748m gt (Nov 217 vessels 4.106m gt)
Port Elizabeth: 100 vessels 2.189m gt (Nov 111 vessels 2.638m gt)
Richards Bay: 141 vessels 5.110m gt (Nov 160 vessels 6.055m gt)
Saldanha: 38 vessels 1.720 gt (Nov 31 vessels 1,880m gt)
East London: 22 vessels 0.517m gt (Nov 29 vessels 0.728m gt)
Mossel Bay: 94 vessels 0.330m gt (Nov 75 vessels 0.396m gt)
- source TNPA, with adjustments made by Ports & Ships to include container weights
http://ports.co.za/news/article_2009_01_6_5032.html
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Recession not all bad news for shipping industry
As the shipping industry braces for the impact of the economic downturn, Mitsui OSK Lines president Akimitsu Ashida believes that it’s not all bad news.
While he estimates the market will take at least two years to recover, he believes it will provide a period of respite where demand and supply of tonnage can be adjusted in the right direction.
Story By : Joy Orlek
Date :1/7/2009
http://www.cargoinfo.co.za/newsdetails.asp?&newsid=7109
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Chinese Navy carries out first escort duty off Somalia
The Chinese Navy fleet of three ships sent to assist national ships sailing off the coast of Somalia has undertaken its first escort duty.
Headed by the multi-purpose missile destroyer WUHAN (Type 052B), four Chinese merchant ships were escorted by the navy ships through an area under threat of pirate action.
China says that it has sent the ships to assist any vessel from either China, Hong Kong or Taiwan. This follows the highjacking of several Chinese ships in recent months and marks one of the few naval service deployments outside of Chinese coastal waters.
Rear-Admiral Du Jingchen, the commanding officer of the naval force consisting of two destroyers and a supply ship, said the Chinese Navy would strictly observe UN resolutions and relevant international laws to fulfil its obligations.
Included among the crew of 800 sailors are 70 soldiers from the People’s Liberation Army Navy Special Force.
http://ports.co.za/news/article_2009_01_6_5032.html
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Dar imposes overstay penalty
THE new penalty charge of US$40 per TEU and $80 per FEU will be imposed on cargo owners if their containers stay longer than 21 days on the Dar-es-Salaam docks, the Tanzania Ports Authority (TPA) has announced, said a report in Dar's Citizen Daily carried in the Shipping Gazette.
TPA spokesman Peter Millanzi said port charges would be levied from January 15 alongside a container auctioning scheme for overstaying boxes with proceeds going to the Tanzania Revenue Authority.
The port previously allowed containers to stay without charge for up to a week and from the eighth day to the 30th be charged US$20 per TEU and US$40 per FEU. Containers in transit are given 15-day extensions after which charges are made.
Story By : Alan Peat
Date :1/7/2009
http://www.cargoinfo.co.za/newsdetails.asp?&newsid=7115
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2009 tanker freight rates picture 'disturbing'
Wednesday, 07 January 2009
Analysts at McQuilling Services have sounded a warning about tanker freight rates for the coming year. “Although the market seems relatively steady at the moment...some occurrences are taking place behind the curtains that may have a negative effect on 2009 freight rates,” stated the latest McQuilling report. OPEC's agreement to reduce some 2 million barrels per day in supply was pointed out as the biggest ever cut in production.
McQuilling did qualify that “while the cut seems rather large it is important to note that 2 million bpd is estimated [on a basis of] 85% compliance of the member states, which may be rather optimistic.”
“However, Russia (not an OPEC member) has also announced that it will independently take preliminary measures towards lowering it production levels, or storing oil, for purposes of balancing global supply and demand figures...,” said the report.
According to McQuilling, the first sign of weakening spot demand “may be the fact that Arabian Gulf VLCC November fixings for December liftings were the lowest since April 2006 levels.”
With regards to tonnage availability, McQuilling said that the “2009 supply picture looks quite disturbing as well.”
Without counting newbuilding delays in 2008 that will roll-over to 2009, the expected fleet additions are nine times the number of fleet exits, according to the report.
McQuilling is expecting 459 tankers (27,500 dwt and higher excluding IMO I and II types) to join the fleet in 2009 and only 51 of the same category of tankers to exit the fleet.
“Given that tanker freight rates are a product of supply and demand interaction, the 2009 picture looks rather gloomy at the moment,” said McQuilling.
“Falling demand and increasing supply point to the possible oversupply of tonnage which usually drives the rates down.”
McQuilling however, did offer hope in the form of counter-seasonal rate spikes.
“2008 rate spikes were caused by various occurrences outside of traditional market fundamentals and if those repeat themselves in 2009, there may still be some room for tanker owners to breath,” it said.
Meanwhile, two of India's largest tanker owners have echoed McQuilling's pessimism for earnings amid a global economic slowdown.
“As the parcel sizes for shipping crude comes down, demand for smaller vessels rise,” a senior official at The Shipping Corporation of India (SCI) was quoted saying.
“Now, even the smaller vessels of the size of suezmax will face pressure on freight rates as demand continues to slow,” he said.
A spokesperson for Great Eastern Shipping Co. Ltd. was also quoted saying that the “OPEC cut is obviously a big hit.”
Source: Tanker World
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31111&Itemid=79
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Nigerian ports struggle to move cargoes
Nigeria’s “outdated legislation, equipment shortages, epileptic power supply, unreliable IT infrastructure, failure to streamline security agencies and dishonesty are reasons why the 48-hour cargo clearance target remain unachieved at the nation's seaports”, reports The Punch of Lagos.
APM Terminals Apapa Ports MD Michael Hansen was cited as saying government agencies operating in the ports hindered the 48-hour container dwell time goal. “We still have 15 agencies present in the port, which may take an interest in the release of containers and therefore make 48 hours clearance impossible,” he said.
Hansen also noted that the implementation of electronic release of containers by Nigeria Customs Services was a good development, but too few were online to facilitate quick clearance.
His terminal handles 47 000 TEU per month if there is no congestion, but capacity falls to 20 000 TEU when importers fail to pick up boxes. “If we can reduce the dwell time from today's 28 days to 14 days, then we will double yard capacity. This will enable us to handle many more containers and it will reduce the need for taking containers to ICDs [inland container depots],” he said.
Story By : Alan Peat
http://www.cargoinfo.co.za/newsdetails.asp?&newsid=7116
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Shipping industry in the doldrums: report
Wednesday, 07 January 2009
Over 200 container ships are reported to be lying idle at the start of the new year on account of falling cargo demand, plummeting freight rates, and fewer vessel hires The US Journal of Commerce Online cited data released by Paris-based consulting firm AXS Alphaliner pegged 165 container ships totalling 430,000 TEUs as idle just before December 25, up from 300,000 TEUs two weeks earlier. The idle tonnage included six ships between 7,500 and 10,000 TEUs and 19 ranging from 5,000 to 7,500 TEUs. Estimates said that around 3.5 per cent of the world's fleet would be idle, highest since the 2002 slump. Reports quoted the agency as saying that the non-utilised tonnage included six ships of between 7,500 and 10,000 TEU, and 19 between 5,000 to 7,500 TEU.
Charter ship owners are said to be hardest hit by the industry downturn, accounting for 105 of the 165 idle vessels.
Other reports said the fall in container throughput in various ports during the last quarter is estimated at around 30 per cent, which has made shipping line streamline sailing schedules, consolidating services, look at vessel sharing, and enhancing port productivity.
On the domestic scenario, where around 6,000 containers are generally pending at the Jawaharlal Nehru port (JNPT) at this time of the year, every year, it is down to around 2,000 TEUs presently, reports said. Reflecting the same trend, the reports said that at Tughlakabad ICD, levels have fallen from 2,000 TEUs to around 500 TEUs.
Going by reports, the forecast for the world shipping industry predicts another 200 box ships to be laid up soon on the back of falling cargo demand, plunging freight rates and vessel hires and a flood of tonnage on major trade lanes.
Source: Domain-b.com
http://sify.com/news/imagegallery/galleryDetail.php?hcategory=14660803&hgallery=14831702
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Container shipping industry faces an abundance of questions
Wednesday, 07 January 2009
What will the container shipping industry look like when it emerges from its current funk? When will global containerized trade resume its growth? Will the volume grow fast enough to absorb the surplus of vessel capacity that is hanging over the market? How long will that overcapacity keep rates at rock-bottom levels? Will carriers ever learn? These are some of questions on the minds of anyone involved in global container trades these days. The answers will depend on a wide array of economic and political unknowns. But most industry watchers see profound changes sweeping the industry over the next five years. Here are some of their educated guesses:
• The industry will consolidate further, with the number of container lines shrinking by as much as a third.
• Freight rates will stay low until trade recovers enough to absorb vessel overcapacity. That process could take as long as four years unless many existing orders are canceled or postponed.
• Surviving carriers will have to differentiate themselves on the basis of customer service, simplicity of rates, and contracts.
• The north-south trade lanes will become more important as South America’s trade with China and India grows.
• The top terminal-operating companies will remain dominant and will acquire smaller, less geographically diversified operators.
One unanswerable question that crops up every time the container shipping industry plunges into the trough of its perennial boom-bust cycle: Will it ever learn from experience and refrain from ordering too many ships the next time it recovers, and from competing only on basis of low rates? Few expect that to happen.
“I’ve been in the industry for almost 30 years and they’ve never learned a lesson to date,” said Steven L. Horton, principal of Horton Global Strategies, an Atlanta consultant who negotiates freight rates for shippers.
Peter Shaerf, managing partner of AMA Capital Partners in New York, agrees. “Shipping lines follow each other into the water time after time, just like their mascot, the lemming,” he said.
Maersk Line’s chief executive, Eivind Kolding, told a logistics conference in Germany recently that he expects a fresh wave of mergers and acquisitions in the industry.
“Quite frankly, some people won’t survive,” said Ron Widdows, chief executive of Neptune Orient Lines, parent of APL.
Widdows is also chairman of the Transpacific Stabilization Agreement, a group representing 14 lines that carry cargo from Asia to the United States.
With load factors deteriorating and freight rates at historic lows, carriers are seizing on every option they can to staunch the bleeding. They are cutting capacity by eliminating at least one of their Asia-Europe or trans-Pacific loops and combining others in vessel-sharing agreements with erstwhile competitors.
New World Alliance partners APL Ltd., MOL and Hyundai Merchant Marine are laying up 40 vessels, and APL has announced 1,000 layoffs worldwide.
Mediterranean Shipping Co. and CMA CGM have suspended two services on the Asia-Europe trade because of tumbling cargo volumes and falling freight rates on one of the biggest liner routes.
Maersk, the market leader on the Asia-Europe trade with an estimated 15 percent of traffic, has already temporarily suspended two services, trimming its capacity by around 10 percent from a year ago.
The four-carrier CKYH alliance, composed of Cosco Container Lines, “K” Line, Yang Ming and Hanjin Shipping, has suspended two services, cutting Asia-Europe capacity by 30 percent, or 16,000 TEUs per week, until March. The New World Alliance and the four-carrier Grand Alliance announced they will pool services between Asia and the western Mediterranean. Cargo volume on the Asia-Europe trade fell in the third quarter from a year ago, the first decline since 2001, after growing by around 20 percent through 2007.
Some carriers, such as Zim Integrated Shipping Services and Pacific International Lines-Wan Hai, which only operate one Asia-Europe service each, are eliminating those services and buying slots on other carriers to tide them over with existing
commitments. Israel Corp., the Ofer family holding company that controls 98 percent of Zim, moved to rescue it in late November with an injection of $150 million if needed, after the carrier swung to a third-quarter loss. The company also is preparing a restructuring program. Israel Corp. said Zim’s strategic plan envisaging large increases in shipping capacity and cargo volumes in 2009-12 “cannot be implemented under current market conditions.”
Other carriers may not have a guardian angel, and liner shipping executives expect some carriers to fail, which will lead to widespread consolidation in the still-fragmented industry.
The lines that fail are likely to be among the smaller carriers, most say. “I don’t believe that the big companies will go out of business,” said Anil Jay Vitarana, president of United Arab Agencies, which represents United Arab Shipping Co. in North America. “They have deep pockets. Eight of the (top) 10 are not totally liner operators.” The Japanese carriers have large Japanese trading companies behind them, and the Chinese carriers are largely government-owned or -backed.
Several of the top-tier operators have formed vessel-sharing agreements such as the ones that Maersk and CMA CGM announced in November between Asia and North America. “A year ago, we would have called them strange bedfellows,” Vitarana said. “People will find ways to survive.”
The liner shipping industry lacks the political clout that has allowed the banking and auto industries to pressure governments for bailouts. This is largely because liner carriers don’t employ large numbers of workers in the countries where they are based.
Governments may eventually face heavy lobbying pressure as some big shippers push for intervention, but that’s not likely until after one or two of the big carriers begin to totter. Their host governments may realize that carriers help grease the wheel of global commerce and understand that their loss would result in less competition, but there are no guarantees.
Some container terminals may be in trouble, too. Terminals that were snapped up by investment banks and infrastructure funds in the heady days three years ago when they looked like money trees may again become candidates for acquisition. With the slippage in U.S. container volumes this year, some of the recently acquired terminals have failed to meet covenants their buyers struck with lenders, who could force their sale to recover the loans.
Similarly, carriers that operate terminals in their major markets may also be forced to sell some of them as a means of survival. The top global terminal-operating companies whose geographical diversification enables them to survive the downturn would be logical buyers of any terminals that come on the market.
Further consolidation of liner companies appears inevitable. There will be fewer and larger carriers among the surviving lines, and they will have to compete by differentiating themselves on the ease of doing business with them. They won’t be able to differentiate themselves on individual vessel services, because many of them will be transporting cargo on the same ship through vessel-sharing agreements.
“They’ll have to compete on customer service, simplicity of rates, simplicity of contracts and by providing visibility through information technology,” Horton said.
He said it will be much more important for the importer and the exporter to spend the time to know about every single carrier and their rates and services, “because the days of (rate-setting) conferences are over when everybody’s rates and surcharges were the same.”
The likeliest targets for acquisition may be the smaller lines that specialize in north-south services. “The trades with Latin America are still doing all right because most of the major carriers have pulled out,” Horton said. The north-south trades will become more important with the continuing growth of the economies of China and India, which will demand more raw materials of the kind that Latin America and Australia produce, which will, in turn, fuel further demand on the southbound leg for the kind of consumer goods that those Asian countries make.
The death in October of CSAV founder Ricardo Claro could make the Chilean carrier a target for acquisition, Horton said. CSAV has been experiencing problems raising capital, and Standard & Poor’s placed its ratings on CreditWatch Negative. Horton thinks that Hamburg Sud, which specializes in the north-south trades, might become another takeover candidate.
All of this assumes that the carriers can work their way out from under the huge amount of vessel capacity that is hanging over the main east-west trades. Carriers that have been ordering huge numbers of big, new vessels of up to 13,000 TEUs have nowhere to put them when they are delivered next year and in 2010.
“I’m sure 2009 will be awful for shippers, logistics companies and container shipping lines,” said Philip Damas, division director of Drewry Supply Chain Advisors. He thinks there’s a 50 percent chance that the ration between the supply of container capacity and the demand for cargo space could pick up halfway through 2010, because many of the ships on order may be canceled or delayed. “It all depends on how many of the existing orders are canceled. If all of the tonnage on order is delivered, you’re talking about a downturn in the container shipping sector lasting four years.”
Trevor Crowe, container analyst with Clarksons, the London ship broker and shipping services provider, is more optimistic. “Over the last 20 years, the average annual growth rate of the container trade has been close to 10 percent,” he said. “If, over the next five to 10 years, once we get through this horrible downturn in the world economy, the average growth rate in the trade gets back up to that 8 to 10 percent range, that would create a requirement for quite a lot of new capacity. This is going to create new challenges in its own right: Can we build enough ships and create enough port capacity?”
Source: Shipping Digest
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31108&Itemid=79
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Ex-generals held in Guinea
07/01/2009 08:20 - (SA)
Conakry - Several generals forced into retirement after the coup in Guinea have been arrested by the military junta and three of them were still in custody on Tuesday, sources from their entourage said.
They said former army chief of staff Diarra Camara, navy chief Ali Daffe and his deputy Admiral Fassiriman Traore, were arrested on Sunday and were still being held at military headquarters in Conakry.
Several other top officers, including a former top defence ministry official, were also arrested Sunday but later released.
The junta gave no explanation for the arrests.
A total of 22 generals were forced into retirement five days after the December 23 coup led by Captain Moussa Dadis Camara.
- AFP
http://www.news24.com/News24/Africa/News/0,,2-11-1447_2449394,00.html
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French Navy Thwarts Hijackings
1/5/2009 10:43:47 PM
According to a Jan. 4 report from Radio Netherlands Worldwide, French sailors have thwarted two attempts to hijack ships in the Gulf of Aden. The French intervened when Somali pirates tried to enter two cargo ships, one sailing under the Croatian and the other under the Panamanian flag. Nineteen pirates were arrested and handed over to the Somali authorities. The French authorities had already prevented an attack on another Panamanian ship in the straight between Somali and Yemen three days ago.
(Source: Radio Netherlands Worldwide)
http://sname.marinelink.com/snamestory.aspx?stid=214063
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Another Tanker Explosion Kills One
1/5/2009 10:44:52 PM
A January 5 report from Port World stated that an explosion on an oil tanker docked in the eastern Chinese province of Shandong has killed one person and left two others missing.valve-replacement works on the deck.
(Source: Port World)
http://sname.marinelink.com/snamestory.aspx?stid=214064
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Bourbon confirms Bourbon Leda seized and crew kidnapped
News - January 7, 2009
Groupe Bourbon in France has confirmed that Bourbon Leda, together with nine crew members, was seized off the Nigerian coast during the night of Saturday 3rd/Sunday 4th January.
Bourbon Leda, a Fast Supply Intervention Vessel (FSIV) and her crew were seized off the coast of Bonny in Nigeria.
On Sunday 4th January, Bourbon received a call enabling it to make contact with the Captain of Bourbon Leda who confirmed that all crew members are in good health.
Bourbon then contacted the families of crew members to keep them informed.
Said the company: "The Emergency Unit put together by Bourbon is working to obtain a rapid release in the safest security conditions."
http://www.oilpubs.com/oso/article.asp?v1=8153
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Daewoo Shipbuilding, Over $10b in 2009
1/5/2009 10:46:57 PM
According to a Jan. 5 report from Reuters, Daewoo Shipbuilding & Marine Engineering, the world's third-largest shipbuilder, said on Monday it expected revenue in 2009 to reach more than $9.8b.
(Source: Reuters)
http://sname.marinelink.com/snamestory.aspx?stid=214065
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Evergreen to order 100 boxships, to move up in global ranking
Wednesday, 07 January 2009
Evergreen Marine is to spend US$5.5 billion building 100 container ships before the anticipated recovery of the global economy in 2012, thereby becoming the world`s third largest container shipping line, up from the fourth place now, the Taiwan Economic News reported. Some 30 will be 8,000 TEU vessels, with the remainder including 40 ships of 5,500 TEU, 10 ships of 3,900 TEU, and 20 ships of 2,800 TEU, in line with the company`s policy of avoiding ultra-large ships of over 10,000 TEU. Evergreen is likely to place orders with Japanese and Korean shipbuilders for the new ships.
The mega project was announced by Chang Yung-fa, chairman of Evergreen Group, at the year-end party of Evergreen recently. It will be the company`s first major shipbuilding project since July 2003, when it placed orders for 10 container ships of 7,024 TEU.
The project echoes Chang`s recent prediction for the global economy to bottom out in the second half of 2011 before achieving real recovery in 2012. Evergreen believes that with the drop in global steel prices, shipbuilding cost will plunge to US$10,000 per TEU in 2011, compared with US$15,000 now.
Source: DPA
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31103&Itemid=79
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Korean Shipbuilders Aim to Keep Top Spot
Wednesday, 07 January 2009
Daewoo Shipbuilding in southeastern Korea ranks among the country's top three vessel makers. Under construction are 30 ships ranging from 300-ton oil tankers to large cargo vessels that can carry 4,000 containers. The shipbuilder generated US$10.5 billion in sales last year. This year it is aiming even higher -- $13.5 billion in sales, up 20 percent from last year. Korean shipbuilders captured seven spots including the top five out of the world's top 10 last year. And since 2000 the number one spot has always been a Korean firm. Han Jang-sup, vice president of the Korea Shipbuilders' Association, said shipbuilders "are eyeing exports of $53 billion worth of vessels this year up 25 percent from last year. The number one spot is guaranteed."
However, the forecast is not entirely rosy because a drastic drop in orders is expected due to the global economic crisis. The shipbuilding industry seems to cycle between lucrative and depressed every four or five years. That is why industry watchers say performance in 2009 will depend on how well Korean shipbuilders plan in terms of maintaining their technological and price competitiveness.
Source: Arirang News
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31101&Itemid=79
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Disabled fisherman treads water for 15 hours after boat capsizes
MIYAKOJIMA, Okinawa -- A disabled fisherman treaded water for 15 hours after his boat capsized offshore before he was rescued, Japan Coast Guard officials said.
At around 8 a.m. on Tuesday, the family of the 55-year-old captain of the three-ton fishing boat, "Fukuwamaru," noticed that his vessel was capsized about 1.4 kilometers north-northwest off the coast of Shimoji Island and called the city's fire department.
Three hours later, patrol ships belonging to the Miyakojima Coast Guard Station found the fisherman treading water about 500 meters west from the capsized boat and rescued him. The captain was not injured, but was hospitalized for a check up.
"I was thrown into the ocean when the boat was capsized by waves around 8 p.m. on Monday. I had been treading water since then," the fisherman was quoted as saying. The captain, who has disabled legs, was not wearing a life jacket. He apparently treaded water for nearly 15 hours using only his arms.
The captain, who lives in Miyakojima, left a port in Irabu Island at around 4 p.m. on Monday to fish for squid. His family was looking for him after he didn't return home at the scheduled time of 11 p.m.
According to the Miyakojima Local Meteorological Observatory, waves were up to 2.5 meters high in the area and a high-wave warning was issued on Monday evening.
(Mainichi Japan) January 7, 2009
http://mdn.mainichi.jp/mdnnews/news/20090107p2a00m0na009000c.html
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Global financial shock biggest threat to companies this year
Wednesday, 07 January 2009
Global financial shocks will be the most challenging risk for companies in the Middle East this year, a researcher from Ernst & Young, a consultancy firm, told Gulf News. The impact of the financial crisis that became apparent in the second half of 2008 in the Middle East will continue to be a major risk factor, according to Michael Green, partner and risk management leader at Ernst & Young Middle East.
The top three strategic risks include energy shocks and cost inflation.
"Companies do business plans that issue certain inputs for cost energy and during the past 12 months, we've seen significant rise and then fall in energy prices, which makes it difficult to plan and structure around general budgeting and procurement," said Green, who was involved in the development of the report.
Even at this point, when many companies have suffered due to the impact of the financial crisis, there are benefits to adopting the strategy.
"Strategic risk management puts you in the position to better deal with them. There is value that has perhaps never been greater," Green said
In a report exploring the top 10 business risks for 2009, Ernst & Young ranked regulatory compliance risk as the greatest challenge facing economies worldwide.
Based on a study of 12 sectors, the consultancy firm analysed the potential risks for the macro-economy. Though the risks vary for each sector, the overall ranking can apply to all businesses and can help prepare them for the coming year, the report said.
It said that regulatory and compliance being ranked at the top is being driven by the increasing burden of regulations in many markets, as well as by the various compliance challenges as companies expand outside of Europe, North America, and BRIC (Brazil, Russia, India and China).
"Regulation has a tremendous effect on the competitive landscape, not only between incumbents and new entrants, but between countries," the report said.
Source: Gulf News
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31088&Itemid=79
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Japan whalers say activists disrupted sailor search
Tue Jan 6, 2009 11:57pm EST
By Rob Taylor
CANBERRA, Jan 7 (Reuters) - Japanese whalers accused hardline anti-whaling activists on Wednesday of disrupting a search for a missing sailor believed to have drowned after toppling overboard in stormy and frigid seas close to Antarctica.
Japan's Institute of Cetacean Research and ship owner Kyodo Senpaku Kaisha said in a joint statement that Sea Shepherd activists took advantage of a distress signal to approach the fleet in darkness during a search for the sailor with lights off.
"Clearly, the Netherlands vessel made use of the distress call and came to disturb our search," ICR director-general Minoru Morimoto said, accusing Sea Shepherd's Dutch-registered flagship Steve Irwin of interfering with the search operation. Hajime Shirasaki, a 30-year-old engine room oiler, was reported missing from the whale hunter Kyoshin Maru No. 2 early on Monday and is believed to have been washed overboard in heavy Southern Ocean seas with four metre (12 feet) swells.
Sea Shepherd founder Paul Watson told Reuters by satellite phone that he only offered to help with the search and had contacted search and rescue authorities in New Zealand to volunteer use of his ship's on-board helicopter.
"We approached them and radioed them and said very specifically that we were not there to harass them, but assist them. We have their response, that they did not want any assistance from an eco-terrorist organisation," Watson said.
"I find it really, really unfair that they would make such an accusation," he said, adding that his ship had its lights on when he approached the Japanese fleet.
Japan's whaling fleet is in the Antarctic for an annual cull of close to 1,000 whales which it says is for "scientific" purposes and does not breach an international whaling ban.
Tokyo this week asked Australia's government to block the Steve Irwin from refuelling in the island state of Tasmania. The ship is due in the capital Hobart in the next few days.
Kyodo Senpaku Kaisha President Kazuo Yamamura said member countries of the International Whaling Commission, which enforces the worldwide ban, should take action against Sea Shepherd, which has repeatedly clashed with the whalers in recent years.
"This kind of behaviour should be condemned for its lack of humanity, and all concerned countries should take the strongest measures against Sea Shepherd, in line with the IWC resolution on safety at sea ... to protect the security of our crews," he said.
STINK BOMBS
Sea Shepherd activists chasing the Japanese fleet off Antarctica in December threw "stink" bombs at one vessel.
But Watson said his group had committed no crime.
"What we have are whalers operating illegally making a request to the Australian government that we should be barred for operating legally," he said.
Australian Greens Senator Bob Brown, whose party helps wield balance of power in the parliament's upper house, said the government should ignore Yamamura and instead bar whalers from Australian ports.
The Japanese fleet has not yet sought access to ports for supplies.
"Hobart will have a warm welcome for Paul Watson and his crew when they return," Brown said.
Japan officially stopped whaling under a 1986 global moratorium, but continues to cull hundreds of whales for research. Much of the meat ends up on dinner tables.
Though most Japanese do not eat whalemeat on a regular basis, many are indifferent to accusations that hunting the creatures is cruel, while others resent being told what they should eat.
(Editing by Sanjeev Miglani)
http://www.reuters.com/article/latestCrisis/idUSSYD380382
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US suspends aid to Guinea
Updated: Wed, 07 Jan 2009 06:57
CONAKRY - Washington said on Tuesday that it was suspending aid to Guinea, hours after the new military junta arrested several generals it had forced into retirement after December's coup.
A statement from the US State Department repeated calls for elections and a return to civilian rule.
Earlier Tuesday, the new military junta arrested several of the generals it had forced into retirement after the December 23 coup.
Three of them were still in custody on Tuesday, sources in their entourage said.
Sources said former army chief of staff Diarra Camara, navy chief Ali Daffe and his deputy Admiral Fassiriman Traore, were arrested on Sunday and were still being held at military headquarters in Conakry.
Several other senior officers, including a former top defence ministry official, had also been arrested Sunday but later released.
The junta gave no explanation for the arrests.
Immediately after the coup the US State Department had warned that Washington would suspend its aid to Guinea, some $15-million this year, if coup leaders did not take steps to return civilian rule.
Tuesday's statement from State Department spokesman Sean McCormack followed through on that warning.
"The United States is suspending assistance to Guinea, with the exception of humanitarian aid and programmes supporting the democratic process," it said.
McCormack added that "the United States remains concerned about the military coup in Guinea," which was carried out hours after the death of strong-arm ruler Lansana Conte.
"We support the efforts of the African Union and the Economic Community of West African States (Ecowas) to speed the transition to civilian rule," McCormack said.
Ecowas announced it was meeting Friday to discuss events in Guinea.
It has not formally suspended Guinea over the coup, but is expected to do so soon.
"We reiterate our call for a return to civilian rule and the holding of free, fair and transparent elections as soon as possible," he added.
"We note that at the time of President Conte's death, Guinea was preparing for legislative elections in early 2009," McCormack said.
A total of 22 generals were forced into retirement five days after the coup, which was led by Captain Moussa Dadis Camara.
Observers said that Tuesday's arrests showed there were still divisions within the army over the coup and that the junta was trying to crack down on dissidents.
On Sunday, French secretary of state for cooperation Alain Joyandet said he had received assurances from the military regime that the transition would be "as short as possible."
Speaking after talks with the junta in Conakry, he said: "The transition should not go past the end of the year 2009."
France, the former colonial power in Guinea, would not stop its co-operation and humanitarian aid to Guinea during the transition period "in order not to penalise the people who need assistance," he added.
http://www.moneybiz.co.za/africa/africa.asp?story=bd271812-10d6-42a8-9745-abac714b8a96
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Port of Hamburg Grows as Distribution Point to Eastern Europe
Wednesday, 07 January 2009
Hamburg ranks among Europe’s historic ports, tracing its prominence to the Middle Ages-some 820 years ago-and the Hanseatic League alliance of North Sea cities. Back then it was agricultural produce-crops like flax, wheat and rye-from the east that flowed through the port, bound for Flanders and England in exchange for cloth and, later, manufactured goods. Five centuries later it is still eastern trade-Georgia, Ukraine, Russia and particularly Poland-that animates Europe’s second-largest container port, but this time it’s largely inbound as the revitalized ex-Iron Curtain countries become growing customers for western products.
The importance of Eastern Europe in the global economy continues to grow. Increased purchasing power has accompanied a shift eastward in the continent’s center of economic gravity, making ‘the hinterland’ attractive for both direct investment and supply chain sourcing. Ukraine’s GDP grew at close to 7 percent the last few years; Georgia’s growth was even more robust. Poland is a great success story of the transitioning economies, now a member of the European Union, thereby eliminating the customs border that had existed between Germany and Poland. Which, in turn, allows goods to flow more easily into and out of that market and to reach further east into Russia.
Playing a central role as Europe’s most important port of entry to the eastern region, Hamburg is emerging as the logistics hub into the hinterland. In addition, intermodal service provided by Polzug Intermodal runs through Poland as far east as Kazakhstan, further solidifying the strategic positioning of the port.
As a universal port offering a full range of transportation services, the Port of Hamburg, just off the North Sea on the River Elbe, is regarded as one of the most important cargo handling centers in the world (and Europe’s second-largest container port). With 320 berths and around 200 container gantries and cranes, the Port can accommodate any type of vessel. In addition, its well-situated geographical position facilitates fast, convenient access via canal to the Baltic Sea.
A distinct advantage to the growth of the Port vis-Ã -vis its competitors is the large amount of cargo directly servicing Hamburg itself, affording the Port substantial economic foundations within the region with an immediate population of 3 million. With some 156,000 jobs in the region depending directly or indirectly on the Port, it exercises strong claims to public and private resources needed to fully exploit growth potential. Some 1 billion euros are expected to be invested in the Port over the next half-dozen years by the city-state of Hamburg, supplemented by billions of euros from the private sector.
Container traffic has been the main motor for growth, expanding annually at rates approaching double digits. Asian transshipment figures prominently in the mix; China is the Port’s most important trade partner. South Korea and Malaysia are also significant. The Baltic Sea connection to the Russian Federation and Poland continues to build.
The cyclical downswing associated with the global financial crisis is understandably heavily impacting the growth trajectory. With Germany and the wider euro zone in recession (economists see no prospects for growth until late 2009 at best), volumes at Hamburg have ‘slacked’ to single-digit growth this year (after 7 consecutive years of double-digit growth). Four container terminals have a collective capacity of nearly 9 million TEUs per year, with a handling capacity of over 2,500 TEUs every 24 hours.
Port infrastructure is strong. Eurogate Container Terminal Hamburg, already able to accommodate post-Panamax vessels, is scheduled for 200 million euros worth of investments to modernize the facility and boost handling capacity to over 4 million TEUs. HHLA Container Terminal Alterwerder is considered one of the most modern container handling facilities in the world; HHLA Container Terminal Burchardkai, the largest handling facility in the Port, accounts for over 5,000 vessels per year.
While the Port has historically been well positioned to western Europe, at its eastern end, the step jump in its distribution prowess comes from rail initiatives eastward, which have contributed significantly to Hamburg’s boom in container traffic as it regained its traditional hinterland—now dead-center in Europe. With road infrastructure in the old Soviet bloc countries insufficient to meet increasing demand, a joint venture intermodal (port operator HHLA, a Hamburg-based trucking company and the Polish State railways) launched Polzug Intermodal in 1991.
Today, Polzug is operating more than 3000 block trains annually to and from Bremerhaven, Rotterdam and Hamburg and the industrial centers of Poland and beyond. In 2007, Polzug carried 140,000 TEUs into the Soviet Union and Eastern Europe with volume expected to jump by a substantial margin in 2008 (pre-year projections were for 25 percent growth minimum, although that was before the global economic slowdown). Currently, it offers container train service at least twice daily from Hamburg to Poland, Lithuania and Ukraine, loading between 70 and 80 TEUs per train. “We have improved our inland terminal facilities in Poland with modern reach-stackers, gantry cranes and tractor-trailer combinations,” notes CEO Walter Schulze-Freyberg.
A major factor promoting Polzug has been the “disappearance” of borders among many of the countries it services and the ability to deliver containerized cargo as far as Central Asia. The plan is ultimately to go into China.
With differences in track gauge into Russia, equipment specifications and border-crossing procedures en route, extending rail corridors to China poses challenges. To test the viability earlier this year, Polzug ran a “demonstration train” from
Beijing to Hamburg.
“Border-crossing procedures, which are the main obstacle, were modified for this special train,” explains Schulze-Freyberg. “However, we did learn that in the future, if we find a solution for lean border management, trains could run as fast as 12-13 days from Beijing to Hamburg.”
For the time being, of course, Hamburg is coping with the global economic contraction. Most of Europe officially fell into recession in by late 2008 (the first time ever for the euro zone); U.S. consumers and companies are showing accumulating signs of distress; China is re-grouping. This shows up in the Port’s traffic. After surging better than 11.5 percent in 2007 largely on the strength of strong growth with Asia, Eastern Europe and Russia, Port CEO Walter Schulze-Freyburg conceded that 2008 numbers would be soft—but even that is relative, since he projected growth would ‘only’ be in single digits (after seven consecutive years of double-digit growth).
Still, conditions deteriorate. Freight rates in the Asia-Europe trades have crashed to record lows as consumer demand continues to crumble. A 20-foot container can now be shipped from Hong Kong to Hamburg for as little as $350, excluding surcharges, compared with around $1,400 per TEU last summer.
Even in the face of such dire circumstances, however, there is still plenty of cargo moving around the world. Shipping hasn’t stopped. Clarkson Research, which tracks supply and demand growth, now expects trade to be up by just 6.8 percent in 2008. In isolation, this looks quite good, but is way down from the figure of more than 11 percent that was being projected this time last year, and largely reflects the collapse in Asia-Europe growth that is now close to zero.
“The volumes are not there,” recently admitted Dr. Jurgen Sorgenfrei, Chairman of the Hamburg Port Marketing. “But we believe that’s merely a temporary fact.”
Source: World Trade Magazine
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31098&Itemid=79
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UAE Naval chief in India on three-day visit
New Delhi, Jan 7: In an effort to further broaden defence cooperation with India, United Arab Emirates (UAE) Naval Commander Rear Admiral Ahmed Mohammed Al Sabab landed here on his maiden three-day visit today.
On the first day of his visit, Al Sabab met his Indian counterpart Admiral Sureesh Mehta and Army chief General Deepak Kapoor at South Block here.
During the meeting, both sides discussed various issues of mutual interest and expanding cooperation in these areas.
"The navy chiefs discussed expanding cooperation in joint training between the two countries," naval sources said.
Interestingly, the UAE navy chief had done most of his naval courses in Pakistan, whereas his son is currently doing a Logistics Course at one of the Indian naval facilities in Mumbai. The two sides are expected to have discussed the piracy issue also during the meeting.
India and UAE are partners in the Indian Ocean Naval Symposium (IONS), an Indian Navy initiative for cooperation and coordination among navies of littoral nations in the region.
After meeting other senior defence officials, Al Sabab will move on to visit Mumbai and meet the Western naval Commander Vice Admiral Jagjit Singh Bedi there.
In Mumbai, the UAE naval chief will visit the naval dockyards, officials said, to look at the modern facilities developed by the Indian Navy there.
A graduate of the Pakistan Naval Academy, the UAE Navy chief has held various staff and command appointments, which include head of operations, administration and deputy director of joint operations directorate of the UAE Navy.
http://www.samaylive.com/news/uae-naval-chief-in-india-on-threeday-visit/603643.html
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Oil caught in tug-of-war
Wednesday, 07 January 2009
Oil prices fluctuated wildly Tuesday after a handful of dismal economic reports countered signs that OPEC nations were starting to comply with planned output cuts. Crude for February delivery rose 76 cents to $49.57 a barrel during trading, but not before hitting a trading high of $50.47, breaking $50 a barrel for the first time in four weeks Prices last touched $50 on Dec. 15, when crude hit an intraday high of $50.05.
New factory orders in the U.S., the world's largest oil consumer, fell for the fourth month in a row in November, according to the government. Meanwhile a real estate group reported that the number of pending home sales in the U.S. fell 4% in November to their lowest level in at least 7 years.
"Clearly the contraction in demand is very significant, and is likely to continue for a while," said Antoine Halff, deputy head of research with brokerage Newedge USA in New York.
Oil prices have fallen from a record high of $147.27 a barrel last summer as investors worried that the waning economy was severely impacting appetite for petroleum-based fuel.
However oil prices have been on the rebound lately, rising nearly 40% since Christmas, as Middle East conflict, an energy contract dispute in Eastern Europe, and a planned production cut from the Organization of Petroleum Exporting Countries sparked concern about supply disruptions.
Retail gasoline prices have been turning higher as well. On Tuesday prices had risen to a national average of $1.688 a gallon from $1.672 on Monday, according to a survey from motorist group AAA.
Crude prices had risen earlier in the day after reports indicated that members of OPEC were complying with the group's largest planned production cut in history.
The economic reports that came out on Tuesday "kind of re-focused the market on demand issues," said Halff. But the market was still getting "conflicting signals."
Production cuts:Several Asian oil buyers claimed to have received notices from the national oil companies of OPEC nations Kuwait and Iran, telling them to expect fewer deliveries this month, according to Reuters.
It's a sign that "they're trying to make an effort, and they're putting plans in place," said Nimit Khamar, analyst with Sucden Financial in London.
The reports, which come from oil buyers rather than the countries themselves, constitute "actual proper evidence" that production is being reduced, according to Khamar.
OPEC, whose members produce about 40% of the world's crude oil, agreed last month to collectively cut production by 2.2 million barrels a day in order to bolster oil prices.
There has been some skepticism among analysts that members would be able to hold to their pledged production cuts.
The group had previously pledged to cut production by 1.5 million barrels a day last November, but production fell by only about 950,000 barrels a day, according to estimates from research firm Platts.
With the price of oil around $50 a barrel, many producers, particularly those such as Iran and Venezuela who rely on oil profits to sustain their economies, have been hard pressed to reduce those profits even further by pumping less.
"Iran in particular hasn't been great in keeping with quotas," said Khamar. The country's economy is geared toward oil prices around $70 a barrel, he added.
Two weeks ago the United Arab Emirates, another OPEC member, also indicated that it would be complying with production cuts.
Middle East and Russia: Global tension also shook the market as Israeli forces continued to battle Palestinian militants in the Gaza Strip and Russia continued its natural gas cutoff to Ukraine and the rest of Europe in a contract dispute.
The Gaza conflict, which does not involve major oil producing areas, sparked concern that a major oil producing nation such as Iran may withhold supplies in protest.
An Iranian military commander called on Islamic nations Sunday to pressure Israel's Western allies by withholding crude oil supplies. However, with Iran's need for oil profits, such a scenario is "really hard to imagine," said James Cordier, founder of brokerage OptionSellers.com in Tampa, Fla.
Russia, which Europe relies on for much of its energy supplies, has been withholding deliveries of natural gas from the Ukraine after the two countries failed to agree on prices.
The dispute has already disrupted supplies of natural gas to Eastern European countries, including EU member Austria.
While the current dispute does not involve crude oil, it points out Europe's precarious position of relying on Russia for most of its energy needs, according to James Williams, energy economist with WTRG Economics in London, Ark.
Source: CNN Money
http://www.hellenicshippingnews.com/index.php?option=com_content&task=view&id=31091&Itemid=79
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Australian military warns of climate conflict
Posted: 07 January 2009 1416 hrs
SYDNEY: Australia's military has warned that global warming could create failed states across the Pacific as sea levels rise and heighten the risk of conflict over resources, a report said Wednesday.
The Australian Defence Force (ADF) analysis found the military could be called on to undertake more security, disaster relief and reconstruction missions as a result of climate change, the Sydney Morning Herald said.
"Environmental stress, caused by both climate change and a range of other factors, will act as a threat multiplier in fragile states around the world, increasing the chances of state failure," the analysis said.
"This is likely to increase demands for the ADF to be deployed on additional stabilisation, post-conflict reconstruction and disaster relief operations in the future."
The analysis, a summary of which was obtained by the paper using freedom of information laws, also noted the possibility of a serious conflict over the undersea oil and gas deposits of the Arctic as shrinking icecaps make these more accessible.
"Climate change is unlikely to increase the risk of major conflict, although there is one exception," it said.
"The Arctic is melting, potentially making the extraction of undersea energy deposits commercially viable. Conflict is a remote possibility if these disputes are not resolved peacefully."
The analysis, completed in November 2007, found that Australia could face increased illegal migration and fishing as Pacific islands succumbed to rising sea levels and climate change impacted on fishing grounds.
"From a defence planning perspective, we don't know how quickly these changes will occur, exactly what their impact will be, or how states and societies will react," it said.
"Nevertheless, climate change may affect security by increasing stress on fragile states, state and societal competition for resources, environmental threats to ADF infrastructure and increasing the frequency and severity of extreme weather events."
The military released a summary of the analysis but refused to hand over the full 12-page report, saying to do so could damage Australia's defence capability and international relations, the Herald said.
The Australian Defence Force had no immediate comment on the report.
http://www.channelnewsasia.com/stories/afp_asiapacific/view/400745/1/.html
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Gaping holes in Mumbai's coastal security
Ruhi Khan
Principal Correspondent, NDTV
Wednesday, January 07, 2009 11:05 AM (Mumbai)
It's been six weeks since the terror attacks on Mumbai, when gunmen killed 178 people, held the city under siege for three days. A flurry of administrative measures followed, particularly aimed at improving maritime security, since the terrorists had used the sea to enter Mumbai.
While it might be too early for those measures to take effect, what we have are lessons from the past, a gaping hole between promise and performance.
The lights of the Taj are glimmering proudly, defiantly weeks after the terror strike. A strike that has once again put in the spotlight India's vast coastline.
Sea route near Taj was used by the 10 terrorists who came to Mumbai on the night of November 26.
They landed on a dinghy at Budhwar Park. A month later when NDTV visited this place there were no signs of additional security.
Admiral Taneja who spent his career guarding these waters said this is a battle that needs many tools.
"What you need are good intelligence and then more ships," said M P Taneja, Rear Admiral (Retired), Indian Navy.
In the aftermath of the Mumbai attacks the government announced setting up of a special maritime police.
They signed a $1.5 billion deal with the US to buy surveillance aircrafts for the navy and promised more ships for the Coast Guard.
But several experts remain pessimistic, they say that even the promises made earlier after the 1993 blasts were never implemented.
Budget sanctions:
Like in 2005-2006 the Centre had sanctioned Rs 41 crore for maritime security
About Rs 43 crore was set aside by the state for eight coastal police stations
An additional 10 lakh was sanctioned per station
On the ground, the difference is glaring. Only 12 of the promised 36 boats have been bought for the Coast Guard.
Coastal police stations have no new recruitments most are transferred from other police stations on rotational basis.
Mumbai's seas are extremely vulnerable to be exploited by terror elements. The funds for upgradation of maritime policing have not been utilized. Coastal police stations are just police stations in name.
But on the positive side, there are security checks at passenger ferry exits in the city and adjoining areas. All fishing boats need to be registered and fishermen are issued identity cards.
This is what security experts stress if India's 7,500 km long coastline has to be protected. Organisations like Coast Guard, the Navy and intelligence agencies all have to work in tandem, with synergy, to prevent another 26/11.
http://www.ndtv.com/convergence/ndtv/mumbaiterrorstrike/Story.aspx?ID=NEWEN20090079093&type=News
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High speed vessel Swift (HSV 2) arrived in Port Antonio, Jamaica
January 06, 2009
Navy News|by MC2 Daniel Ball
PORT ANTONIO, Jamaica - High speed vessel Swift (HSV 2) arrived in Port Antonio Jan. 4 for the first of two instruction evolutions in Jamaica during Southern Partnership Station (SPS).
Southern Partnership Station is an annual deployment of various specialty platforms to the U.S. Southern Command area of focus in the Caribbean and Latin America. The mission goal is primarily information sharing with navies, coast guards, and civilian services throughout the region.
Training teams from Navy Expeditionary Training Command, Naval Criminal Investigative Service and the Marine Corps Training and Advisory Group began their courses Jan. 5 with Jamaica Defense Force (JDF) members. The courses provide instruction in a variety of fields such as land navigation, port security, waterborne security operations, small boat repair and maritime interdiction operations.
The arrival of the SPS team was noted with a formal ceremony on Swift with opening remarks by Cdr. Chris Barnes, SPS mission commander and Lt. Tomar Lewis, JDF training officer.
"It's certainly a pleasure and a great opportunity to have this training at this time," said Lt. Lewis. "I'd like to implore the officers and men of the JDF to open your minds to the training and absorb all of the knowledge that is going to be passed on to you. Remember that whatever is learned here this week you'll pass on to those in your units."
Training began immediately after the ceremony with students dispersing to classrooms set up aboard Swift.
Jamaica is the third stop for SPS. Training in the first two countries, El Salvador and Panama, was very successful with knowledge flowing both ways. "The training team members learned as they taught," said Cmdr. Sam Sorgen, SPS deputy mission commander. "The partner nation students have passed on unique training knowledge based on the strategic region they operate in. The JDF is already explaining many of the issues they're having with drug traffic around their country, so we are training to that level while they bring real world knowledge to us."
After Jamaica, SPS is scheduled to visit Barbados, Colombia, Panama, Nicaragua, and the Dominican Republic.
The mission is coordinated through U.S. Naval Forces Southern Command/U.S. Fourth Fleet (NAVSO/4th Fleet) with partner nations to meet their specific training requests. As the Naval Component Command of SOUTHCOM, NAVSO's mission is to direct U.S. Naval Forces operating in the Caribbean, Central and South American regions and interact with partner nation navies within the maritime environment. Various operations include counter-illicit trafficking, theater security cooperation, humanitarian assistance and disaster relief, military-to-military interaction and bilateral and multinational training.
Fourth Fleet is the numbered fleet assigned to NAVSO, exercising operational control of assigned forces in the SOUTHCOM area of focus.
http://www.military.com/news/article/navy-news/hsv-swift-arrives-in-jamaica.html?col=1186032311124
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Terror dossier proves Pak agencies behind 26/11
Sumon K Chakrabarti / CNN-IBN
Published on Wed, Jan 07, 2009 at 09:27, Updated on Wed, Jan 07, 2009 at 10:40
New Delhi: India has handed over a dossier to Pakistan which includes evidence that show Pakistani elements were involved in planning and executing the Mumbai terror attacks.
The dossier includes evidence of every nature - physical, forensic, electronic and human - put together in what is now know as Mumbai terror dossier.
Pakistani terrorists organisation Lashkar-e-Toiba's commanders Zaki-ur Rehman Lakhvi, Zarar Shah, Hafiz Saeed are the main suspects in the attacks.
But now it is clear that it was not just the Lashker that planned and executed the attacks. It also clear that a Pakistan within Pakistan is emerging, which is beyond the control of its civilian government and it is actively sponsoring terrorism.
The dossier includes confession of Ajmal Amir Kasab, the only terrorist of 26/11 attack captured alive, DNA prints of all 10 terrorists and the log book recovered from MV Kuber, the vessel which was hijacked by the terrorists to reach Mumbai.
http://ibnlive.in.com/news/terror-dossier-proves-pak-agencies-behind-2611/82121-3.html
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Joint Operations Take a Big Leap
January 06, 2009
U.S. Coast Guard|by PA3 Luke Clayton
Perched at the edge of a U.S. Marine Corps helicopter, the U.S. Coast Guard Vertical Insertion Team Members (VITM) wait for the signal. They see the deck of the U.S. Navy's USS Crommelin rolling in the waves 70 feet below.
There's the signal. A tap on the shoulder. It's time to jump.
Maritime Safety and Security Team (MSST) 91107, a Coast Guard anti-terrorism team based in Honolulu since 2002, recently began a partnership with the U.S. Marine Corps and U.S. Navy to provide a law enforcement team designed to protect the public from terrorist threats.
To better enhance mission capabilities and use the best aviation platform available, the Coast Guard MSST members work with a Marine Corps CH-53 helicopter crew to conduct vertical insertions.
So what exactly is a vertical insertion?
A vertical insertion is a maritime-based tactic used to board high interest vessels using the element of surprise. Vertical insertions can be used at any time and are yet another layer of maritime security the Coast Guard provides to those who work and play on the nation's waterways.
"It's hard to board a vessel by boat when the crew doesn't want you onboard," said Lt. j.g. Zachary Huff, the MSST's maritime law enforcement force protection leader, referring to the team's ability to use stealth and speed by deploying from an aircraft.
An additional benefit of the vertical insertion technique is that it can also be used for routine at-sea boardings. Due to Hawaii's prevailing sea states and the inherent dangers associated with the transfer of law enforcement personnel from vessel to vessel at sea, the vertical insertion tactic aims to reduce crew fatigue and provide safer boarding conditions for Coast Guard boarding teams.
"Vertical insertion leads to better safety and ultimately a more robust and responsive law enforcement capability to interface with the maritime community at sea," said Lt. Cmdr. Tom Kuhar, the MSST's executive officer.
The eight VITMs of MSST 91107 must practice to perfect the daring maneuvers.
Early in September 2008, members of the MSST gathered for three days at Marine Corps Base Hawaii (MCBH), located in Kaneohe, Hawaii, to train with the Marines. The first two days consisted of classroom and field exercises, which included dunk-tank training. During dunk-tank training, MSST members climbed into a gutted helicopter, buckled up and rolled the helicopter into a pool. They then tried to escape the cold, clammy hands of the water below.
On the third day, the team climbed a 50-foot rappel tower and worked with a Marine Helicopter Rope Suspension Trainer to perfect rappelling techniques.
"This is the first time our office worked with the Coast Guard, and we were surprised with how tough and squared away these guys are," said U.S. Marines Gunnery Sgt. Eric Johnson, the lead training facilitator at MCBH.
"The Marine trainer was extremely helpful," said Petty Officer 2nd Class Jesse Knee, a VITM from the MSST. "He gave us valuable pointers from his past experiences."
MSST members also practiced different ways to use the rappel rope, maneuver down the tower and land safely on the ground. Knee said three VITMs can be on the rope at the same time.
After a full week of hands-on and classroom training, members were ready for a full scale dress rehearsal.
Perched at the mouth of the helicopter, the team member feels the weight of the jumpmasters' hand on his shoulder. It's time to go. Holding on to the safety line above his head, the member leaps from the helicopter. He has one chance; one chance to get everything perfect or else something tragic could happen. But nothing will. He is ready and his training sets in. Gripping the rope with his gloves and boots, the member slides down the rope -- ready for all threats, all hazards, any time.
http://www.military.com/news/article/coast-guard-news/joint-operations-take-a-big-leap.html?col=1186032366495
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Two Taiwanese sailors pushed overboard by crew, MOFA says
Taiwan News, Staff Writer
2009-01-07 12:00 AM
The Indonesian crew of a missing fishing trawler pushed two Taiwanese officers into the ocean, the Ministry of Foreign Affairs (MOFA) said yesterday.
The Chin Man Cheng left the Pingtung County harbor of Tungkang on Oct. 11 last year heading to the Indian Ocean. The crew lost contact on Dec. 30.
MOFA said it received the news that the Indonesian navy had intercepted the ship off the west coast of the island of Sumatra on Monday afternoon. The seven Indonesian crew members were still onboard and reportedly told the navy they had pushed the Taiwanese captain Hsu Chi-fa and officer Cheng Yi-yao into the ocean.
The Indonesian navy had been alerted to the whereabouts of the Chin Man Cheng because Taiwan had picked up a signal from the ship's global positioning system on Jan. 3, showing it was moving toward a small Indonesian island.
Taiwanese fishing trawlers are often manned by crews from Southeast Asian nations. Conflicts between Taiwanese captains and foreign crew have happened before.
http://www.etaiwannews.com/etn/news_content.php?id=831299&lang=eng_news
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Broadband communication to help ships during emergencies
Seamen in the region and around the world can now easily use broadband internet and conduct video-conference and two-way communication vital during emergency situations, such as piracy attacks.
Dubai-based Tensosys, a leading marine comprehensive solutions provider in the Middle East, has launched Fleet Broadband System through Japan Radio Company (JRC), a leading Japanese manufacturer of marine navigation and communication products.
Vizada, the Inmarsat Satellite airtime provider is also part of the team that offers the new technology, ranging from crystal voice quality, to high-speed internet browsing and virtual meetings using video-conferencing and remote ship maintenance.
Fleet Broadband system, working on the Inmarsate marine satellite platform, is set to convert ships into floating broadband offices.
"This new technology is a boon to seafarers and will be the future of maritime communications. It will improve on-board productivity and enhance crew morale as well," said Tetsuya Murata, Design Manager.
"Using Fleet Broadband, a ship is converted into a broadband floating office with simultaneous access to voice and high-speed data along with fax and SMS text messaging capabilities."
Japan Radio Company (JRC), a pioneer in marine navigation and communication technology, has introduced the new Fleet broadband system (hardware and software package) in the Middle East to capitalise on the new telecommunication infrastructure provided by Inmarsat, which recently launched three new marine satellites.
Each ship will have one Fleet Broadband system to get connected to the satellite. Worldwide, about 500 ships have already introduced JRC Fleet Broadband Fleet and another 1,000 ships would soon have the system.
With the new system, shipmasters can ensure smooth navigation and also perform other crucial duties such as frequent updating of weather information, route planning and ordering of supplies.
"Broadband internet connectivity of ships will enable crew to remain in contact with family through phone calls and e-mails and browse the internet. The new facility will help ships core voice and ISDN data capability of existing maritime services," said Hisasue Massakazu, International Business Manager of JRC.
Fleet Broadband is delivered through Inmarsat Four, the most advanced commercial communications satellite, which is expected to remain operational until 2020. Experts see a broadband revolution in high seas using the future Maritime Satellite technology.
"We are at the crossroads of a new evolution, and the seas will become safer to cross with this new reliable high-speed communication tool. Fleet Broadband will provide broadband connectivity on ships and ease the internet bottlenecks and allow use of video-conferencing and other two-way communication methods in an emergency situation," said KP Pillai, Director of Operations, Tensosys, Centena Group.
http://www.business24-7.ae/articles/2009/1/pages/01072009_3dbac4688f254572b04845510ad0e533.aspx
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U.S. continues to ship food to DPRK
www.chinaview.cn 2009-01-07 12:06:01
WASHINGTON, Jan. 6 (Xinhua) -- The latest shipment of food aid supplied by the United States is expected to arrive this week in the Democratic People's Republic of Korea (DPRK), the State Department said Tuesday.
"The next shipment of food aid totaling 21,000 metric tons is now expected to arrive in the DPRK by the end of this week, with its delayed arrival due to recent rough seas," the State Department said in a statement, adding that shipment will also be distributed by U.S. NGOs.
The United States has not stopped food aid to the DPRK, the department said. More than 143,000 metric tons of food, including wheat, corn, and soybeans, was delivered to the DPRK in 2008, it said.
"We continue to support the U.S.-DPRK food aid program and are committed to the well-being of the North Korean people," the department said.
The United States announced in May 2008 resumption of food aid to the DPRK for the first time in three years. It had offered food aid from 1995 to 2005, when the program was suspended after Pyongyang expelled representatives of the World Food Program.
The Bush administration, which claimed that the resumption of food aid was unrelated to the nuclear disarmament process in the Korean Peninsula, has decided to suspend fuel shipments to the DPRK, as the latest international efforts have failed to hammer out a verification protocol of the DPRK's nuclear facilities due to Pyongyang's rejection.
The six-party talks ended the third meeting during the sixth round of talks last month in Beijing without substantial progress on how to verify the DPRK's nuclear facilities.
http://news.xinhuanet.com/english/2009-01/07/content_10617623.htm
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Chinese Navy escorts 4 vessels off Somalia on day one
By Bao Daozu (China Daily)
Updated: 2009-01-07 12:04
ON BOARD HAIKOU - The Chinese navy joined its counterparts from other countries to fight Somali pirates and successfully escorted the first fleet of ships through the Gulf of Aden Tuesday.
Merchant vessels sail in a line formation under command of the DDG-169 Wuhuan destroyer in the Gulf of Aden, January 6, 2009. [Xinhua]
Two navy destroyers and a large supply vessel escorted four Chinese merchant ships, one of which was from the Hong Kong special administrative region, off the coast of Somalia.
About 30 ships from the Chinese mainland and Hong Kong have sought the navy's help to sail past the horn of Africa, where Somali pirates have created terror, especially in the past year.
The three navy ships entered the waters off Somalia around 1 am yesterday after having set sail from Sanya, Hainan province, on Dec 26. The UN Security Council and Somalia's transitional government both have approved of China's mission: to primarily escort Chinese merchant ships off Somalia's coast.
Yesterday's escort mission started at 11 am. The destroyer and flagship, the Wuhan, led the fleet, with another destroyer, the Haikou, making up the rear. The ships maintained a distance of 1 nautical mile during the 550-nautical-mile escort journey.
Liu Jianzhong, political commissar of the Haikou, told China Daily that the navy fleet would fulfill its responsibility of safeguarding China's civilian vessels.
Mission commander, Rear Admiral Du Jingchen, said: "We will earnestly follow UN resolutions and relevant international laws strengthen coordination and keep a close watch to ensure the security of the vessels and crew being escorted."
The UN Security Council adopted four resolutions toward the end of last year, calling on all countries and regions to help patrol the Gulf of Aden and the eastern part of Somalia's coast to thwart piracy in one of the world's busiest shipping channels.
In the latest incident, a Sierra Leone cargo ship, with 32 Chinese on board, threw off the pursuit of four pirate boats in the Gulf of Aden on Monday, the China Maritime Search and Rescue Center said.
The ship carrying more than 10,000 tons of silicate and oil-drilling equipment from Singapore to Djibouti, ran into the pirates around 3:50 pm.
The Ministry of Transport contacted the International Maritime Bureau immediately to seek help from nearby warships. The cargo ship was found secure around 4:20 pm.
The ministries of agriculture and foreign affairs have warned Chinese civilian ships not to sail close to Somalia's coast.
The Chinese naval fleet's commanding center said it had divided the waters into seven patrolling regions, spanning 550 nautical miles.
Twenty Chinese mainland and six Hong Kong vessels likely to pass through the waters between Jan 6 and 10 approached the navy yesterday to seek escort service in the Somali waters, the Ministry of Transport said.
The ministry has begun receiving applications from ships planning to sail through the region after Jan 10, too, a water transport department official said.
The government values the safety of overseas Chinese, and the navy fleet will also protect ships from Hong Kong, Macao and Taiwan, Foreign Ministry spokesman Qin Gang said at a regular press conference yesterday.
A spokesman for Hong Kong Marine Department said the agency will hand over escort applications from Hong Kong-flag vessels to the mainland authority. It has also informed 227 Hong Kong shipping companies about the naval fleet arrangement.
The Hong Kong Ship Owners Association said about 20 Hong Kong-flag vessels pass through the Gulf of Aden every month.
Gilbert Feng, assistant director of the association, said escort applications for ships sailing to the Gulf of Aden should be submitted to the Marine Department three to seven days before they reach the gulf.
Applications should include the name of the ship, the name of the owner, the expected date of arrival, a description of the cargo and the number of people aboard.
Taiwan shipping companies can apply to the Taiwan-based Straits Exchange Foundation, which handles Taiwan-related affairs, for the navy's escort service.
Teddy Ng contributed to the story
http://www.chinadaily.com.cn/china/2009-01/07/content_7373037.htm
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Homeland Security rules on data collection rile businesses
By Thomas Frank, USA TODAY
WASHINGTON — The Department of Homeland Security will collect millions of new electronic records about private planes, imported cargo, foreign visitors and federal contractors as part of an array of controversial last-minute security policies imposed by the Bush administration.
Businesses say the policies are costly, and worry that sensitive information could be released if a database is lost or stolen. Some charge the Homeland Security Department with rushing to impose policies and ignoring business concerns.
"Industry keeps reaching out to (them), but our comments are continually dismissed," said Catherine Robinson, director of high-tech trade policy for the National Association of Manufacturers trade group, which represents 14,000 companies.
Homeland Security spokeswoman Amy Kudwa said that by collecting information electronically, the department can run security checks more quickly than with paper forms, and could flag people or cargo that should be barred from the USA. Some changes have been in the works for more than a year.
There has been a lot of opposition. The U.S. Chamber of Commerce and four other groups have sued to block a policy requiring federal contractors to send information about employees electronically to the department to verify that they can work legally in the USA.
The policy takes effect Jan. 15 and applies to employees working on a federal contract worth more than $100,000.
Businesses worry that the department's online system, which some employers now use voluntarily, incorrectly lists legal citizens as ineligible to work, chamber Vice President Randel Johnson said. The chamber wanted more tests before 170,000 federal contractors were forced to use the system. But, Johnson said, "DHS simply has more faith in the system than a lot of our members."
On Tuesday, Ed Bolen, CEO of the National Business Aviation Association, criticized as "overly broad" several proposed security rules for 15,000 private jets, such as barring dangerous items from the passenger cabin. The rules, which aren't final yet, would require private-jet passengers to be checked against terrorist watch lists.
Companies fear that their business strategies could be compromised if their flight information leaks out, association Vice President Douglas Carr said. "I don't think there's a clear, demonstrated ability to secure this data," Carr said.
Kudwa, the Homeland Security spokeswoman, said disputes are inevitable. She said, however, that the government routinely listens to business concerns about security. "We've approached regulations focusing on long-term security risks, which is not something the market necessarily does for itself," Kudwa said.
The department has eased some proposals. Dozens of companies and associations protested a plan that would require them starting Jan. 26 to submit detailed information about imported cargo 24 hours before it is loaded on a ship in a foreign port.
Robinson of the manufacturers association said the administration agreed to ease some of the data requirements and to reconsider the policy after June 1. "It's still onerous, but it's definitely better than where we started," Robinson said.
The administration also eased a policy effective Jan. 12 that requires people flying to the USA from 27 friendly countries to register online three days before their flight, said Steve Lott of the International Air Transportation Association. Visitors who do not register will be allowed in the USA during a phase-in period likely to last months, Lott said.
"A lot of these programs were not coordinated," Lott said. "They were moving too fast."
http://www.usatoday.com/tech/news/techpolicy/2009-01-06-security_N.htm
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UK Navy Under Fire For Dead Dolphins
Dolphins Videos
9:35am UK, Wednesday January 07, 2009
Katie Stallard, West of England correspondent
A top marine biologist has told Sky News he believes naval sonar activity before a mass stranding of dolphins should be treated as a "smoking gun".
Professor Chris Parsons has spent a decade studying cetacean strandings around the world.
He agreed to examine a case from June 2008, when 26 dolphins were stranded along 10 miles of the Cornish coast, three days after a major military exercise in the area.
"I would say that there's a substantive amount of noise-producing activity just a couple of days before this stranding event occurred," Prof Parsons said.
He told Sky after looking at the details: "To use a term that's often associated with these strandings now - it's a smoking gun.
"It fits with the pattern of stranding events we've seen in other parts of the world where it's taken a couple of days before the animals have actually stranded."
The Royal Navy has given Sky a detailed briefing on exactly what they were doing in the area that week.
Five experts at Navy Command took us through, day-by-day, the precise location and extent of their activities, and the rigorous precautionary procedures they are required to follow.
It began on the Monday with small amounts of live firing and sonar use, building up to a major exercise on the Thursday - what they call their "Thursday War".
This involved two frigates operating hull-mounted sonar, supported by two helicopters using sonar dipping devices, attempting to lead a battle group through the area under mock attack from a submarine.
It was an intense amount of sonar and munitions activity, but the Navy points out that it was all over by 2pm on the Thursday and the dolphins did not start stranding until the Sunday evening.
In the 15 or so years they have been carrying out this weekly exercise, they say they have never before been associated with a stranding.
An MoD spokesman told Sky: "There is no evidence to show that the Royal Navy is responsible for the mass stranding of dolphins in the Falmouth Estuary in June."
But the use of naval sonar in peacetime training is a contentious issue.
In the United States, environmental groups have pursued the Navy through the courts to try to stop them using mid and high-frequency sonar in exercises.
In the lower courts they won but the Supreme Court overruled and found in favour of the Navy.
Dr Naomi Rose from the Humane Society International was involved in the US lawsuits.
She believes scientific consensus on the link between military sonar and stranding is now approaching a tipping point.
"We never actually 'prove' anything as scientists," she explained. "But we are reaching the point where the weight of evidence is pretty convincing."
We're never going to definitively prove it, but we will accumulate an overwhelming weight of evidence. I think we're almost there.
Dr Naomi Rose from the Humane Society International
It is not just naval sonar: commercial shipping, seismic surveys and oil and gas exploration put huge amounts of intense acoustic energy into the water.
This can disrupt marine mammals' ability to communicate and navigate.
The more we industrialise our oceans, campaign groups warn, the more we risk silencing the songs of the sea forever.
Scientists at the Institute of Zoology continue to investigate the Cornish stranding - among the possibilities they have had to consider are sickness, injury, extreme weather, natural mortality and fisheries by-catch.
It will now be for them to decide what, if any, role the Royal Navy played.
They are expected to publish their findings within the next few months.
http://news.sky.com/skynews/Home/UK-News/Dolphins-Stranded-Expert-Says-Mass-Stranding-Near-Cornwall-After-Navy-Sonar-Is-Suspicious/Article/200901115198272?lpos=UK_News_News_Your_Way_Region_2&lid=NewsYourWay_ARTICLE_15198272_Dolphins_Stranded%3A_Expert_Says_Mass_Stranding_Near_Cornwall_After_Navy_Sonar_Is_Suspicious
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January 07, 2009 Wednesday
India launches new propaganda blitz
NEW DELHI: India launched a new propaganda campaign against Pakistan on Tuesday alleging that state authorities “must have had” a hand in the Mumbai terror attacks.
Stopping short of directly blaming Islamabad for sponsoring the attacks, Indian Prime Minister Manmohan Singh repeated allegations that the attack was carried out by militant group Lashkar-e-Taiba.
But in his most forceful speech since the November attacks, he said “there is enough evidence to show that, given the sophistication and military precision of the attack, it must have had the support of some official agencies in Pakistan”.
The careful phrasing of Mr Singh’s comments seemed aimed at keeping tensions between the bitter rivals at a low burn.
Mr Singh also charged Pakistan with “whipping up war hysteria” and criticised what he called its reluctance to crack down on militants operating on its territory.
“Unfortunately, we cannot choose our neighbours,” the Indian premier said. “Some countries like Pakistan have in the past encouraged and given sanctuary to terrorists and other forces who are antagonistic to India.”
He spoke before a meeting with senior officials from around the country to discuss security concerns in the latest in a recent ratcheting up of Indian rhetoric.
Mr Singh was also highly critical of how Pakistan had handled the investigations into recent attacks, indicating Pakistan had been unwilling — or perhaps unable — to crack down on terrorists operating on its soil.
“The more fragile a government, the more it tends to act in an irresponsible fashion,” he remarked.
Mr Singh also criticised India’s own security and intelligence operations, which have been excoriated as ineffective and threadbare since the attacks. He called for better maritime security, improved intelligence sharing and stronger local police forces.—Agencies
http://www.dawn.com/2009/01/07/top2.htm
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No decision on Sea Shepherd port visit
January 7, 2009 - 1:59PM
Australia still won't say if it will allow an anti-whaling vigilante ship into the country to stock up on fuel.
The Sea Shepherd has suspended its pursuit of Japanese whalers in Antarctic waters, and is heading to Hobart.
Japan plans to ask Australia to bar the group's entry, saying the Sea Shepherd's "pirate-like" and violent actions must be rejected.
Acting Prime Minister Julia Gillard was cagey on whether she would allow the protesters to dock in Hobart.
In a statement on Tuesday, she said if the Sea Shepherd tried to enter, a decision would be made in accordance with usual procedures and laws.
Ms Gillard noted the vessel, called the Steve Irwin, has previously entered Australian ports - most recently in December.
But she spoke out against any dangerous protests on the high seas.
"Australia respects the right to peaceful protest at sea, but condemns dangerous, violent or illegal protest activities, including any activity that may jeopardise safety at sea," she said.
Greens leader Bob Brown said instead of banning the Sea Shepherd, Prime Minister Kevin Rudd should "get off his couch" and do something against the Japanese whaling program.
"Hobart will have a warm welcome for (Steve Irwin Captain) Paul Watson and his crew when they return," he said.
Senator Brown called on the government to instead ban Japanese ships which used Australian ports to pick up woodchips from old-growth forests.
http://news.theage.com.au/national/no-decision-on-sea-shepherd-port-visit-20090107-7bnv.html
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Updated Wednesday, January 7, 2009 10:21 am TWN, Reuters
Aussie military sees recruiting surge
CANBERRA -- Australia's military has experienced a surge in recruitment as the global financial crisis hits home and the government warns of higher joblessness, a newspaper
reported on Tuesday.
Defence enlistment numbers jumped by almost 20 percent over the three months to December, easing a recruitment crisis that forced the navy to take an extended Christmas holiday, the Australian newspaper said.
“Over time, the Australian Defence Force could expect to recruit high-quality applicants and retain those already serving for longer periods,” a military spokesman told the newspaper.
Australia has been late to feel the full brunt of the global financial crunch and the center-left government remains hopeful the country can avert a recession gripping major world economies.
Prime Minister Kevin Rudd ordered a US$7.4 billion pre-Christmas economic stimulus targeting poorer families and pensioners as the country's 17-year economic expansion showed signs of ending.
Unemployment moved up from 33-year lows and some economists warned one million people could be out of work by the end of this year prompting many to turn to the military.
Australia's air force showed a 27 percent increase in job applications up to December compared to the previous year, while the navy saw a 22 percent jump and the army 15 percent.
Critical personnel and recruitment shortages in November forced the navy to order a two-month Christmas vacation, while the air force said it was looking at a scheme to borrow civilian airline pilots for new tanker and early warning radar aircraft.
The 50,000-strong military last year launched an expensive drive for new recruits with forces stretched by overseas deployments in Iraq, Afghanistan, Solomon Islands and East Timor.
Australia has already begun a 10-year, US$43 billion defense modernization, with new missile destroyers, amphibious assault ships, missiles, tanks and helicopters adding to an air force plan to buy 100 stealth fighter aircraft.
http://www.chinapost.com.tw/asia/australia/2009/01/07/190928/Aussie-military.htm
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Maersk axes 100 jobs
Roger Hailey - Wednesday 7 January 2009
AP Moller-Maersk is axing 100 jobs at its Copenhagen headquarters as part of a reorganisation that will create two new units – a Corporate Centre and service functions.
The Danish container, ports and shipping giant said that the Corporate Centre will focus on a number of group governance activities like accounting, finance, IT, corporate relations and Human Resources.
The service functions will support the Corporate Centre and all business units in areas such as procurement, IT-services, oil trading, technical operations and recruitment.
Group chief executive Nils Andersen, who last month warned of “exceptionally tough times ahead”, said in a statement today: “The new setup means change to a number of activities and some will not continue. This will impact the number of employees in group headquarters where 830 positions will be reduced by around 100. Of the remaining staff around 250 will be employed in the Corporate Centre and 480 in service functions.
“Having to reduce the number of employees is regrettable. But as the pressure on our business units increases, Group Functions also have to be more effective in order to strengthen the Group’s overall competitiveness.”
Mr Andersen added: “The split will clarify responsibilities within the Group and we will place even more operational responsibility where it should be – decentralised in the business units. In addition, it will reduce complexity and save costs.”
Maersk will consult with an employee committee about redundancies, including compensation for the employees being made redundant.
The new headquarters setup is expected to be finalised by the end of this month.
http://www.lloydslist.com/ll/news/maersk-axes-100-jobs/20017604979.htm;jsessionid=E6A84237B1BE7CAE58D8921BE62AE328
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Naval intervention is bringing Somalian pirates to book
David Osler - Tuesday 6 January 2009
AFTER a year in which Somalian pirates were seemingly able to carry out their crimes with virtual impunity, there are tentative signs that the efforts of the world’s navies to tackle the problem are starting to have a pronounced effect.
While both military and shipping industry sources warn that it is too early to proclaim that the battle is being won, there is now clearly growing confidence in ultimate success.
The International Maritime Bureau has reported five attacks so far this year. Naval sources say there have been others. Perhaps significantly, only one of them has been successful.
In addition, other suspected incidents include the Danish Navy’s claim that one of its warships assisted a Dutch cargoship last Friday, rescuing five pirates who had been forced into the water.
Again on Friday, French forces handed over eight suspected pirates to the Somalian authorities, after responding to a distress signal from a Panamanian cargoship that was being pursued.
On Sunday, French warship Jean de Vienne prevented a further two hijack attempts against ships flagged in Panama and Croatia. In the process, it arrested 19 more pirates who are also to be handed over to the authorities in the breakaway Somalian region of Puntland.
That does not make everybody happy. Puntland is the main operational base for the pirates, and some suspect that its self-proclaimed government is not 100% innocent of any involvement. For its part, Puntland says that it has imprisoned some 96 pirates.
Furthermore, Coalition Task Force 150, the multinational anti-terrorist naval effort, has a policy of not capturing suspect pirates in the first place. Again, some in the shipping world believe that, in effect, lets the bad guys off the hook.
US Navy fifth fleet spokeswoman Jane Campbell said: “I would be hesitant to say that a corner has been turned in terms of percentages. There is a great tendency, any time we hit a new year, to start relooking at statistics. I do not think there is that level of fidelity in statistics over a couple of days.
“However, we do have a very important measure of effectiveness in terms of the number of navies and international partners who are on station with ships and aircraft, providing a deterrent against pirate activities in the region.”
The number of naval assets in the region has been growing steadily since the spike in pirate attacks noted last August, she said. And while even one hijack is one hijack too many, the chance of any given vessel being captured has always been low, and is now “statistically insignificant”.
While CTF 150 would deter and disrupt acts of piracy, she said, it does not seek to emulate the French example, and therefore the question of bringing offenders to book does not arise.
“We are the operators, we are the folks at the pointy end. That is a policy decision,” said Cmdr Campbell. “We see that there is a lot of progress being made in terms of formal agreements that would allow for these criminals to be held accountable and tried.”
Individual navies follow the instructions of their respective governments, under so-called ‘national tasking’. But the coalition does not capture suspects, Cmdr Campbell said.
Attempts to press the point elicited only evasive answers. Asked if a pirate suspected of killing a civilian seafarer would be freed, Cmdr Campbell said she preferred not to discuss hypothetical situations and that such an incident would be decided on a case by case basis.
Cyrus Mody of the International Maritime Bureau is also cautiously upbeat about prospects for beating piracy: “It is still very early days. We should give it some time before we can say with certainty that, yes, piracy is decreasing.
“But we are pretty confident that it will happen, thanks to the very proactive measures the navies are taking now. A number of attempted hijacks have been foiled on account of their presence. It is all positive right now; we just have to see how long the pressure can be maintained.”
The industry anti-piracy watchdog wants to see pirates tried and sentenced appropriately. But there are questions over whether it is happy with handing over pirates to the Puntland authorities.
“That is a very debatable question,” Mr Mody said. “Because Somalia is so unstable, it would be a lot better if international governments agreed to try pirates and punish them outside Somalia.
“If the pirates are going to be given the appropriate sentence in Puntland, then yes, they should be handed over. But if [sentencing] is not going to be appropriate — either too harsh, or if they are just going to be let free — then, obviously, we would not want that to happen.”
Mr Mody said that navies would like to bring the criminals to book, but that they have to act in line with governments’ policies. “At the end of the day, they have to adhere to rules and regulations,” he said.
“[There needs to be] one common law which would dictate that any navy can capture and pirates would be tried by X, Y or Z.
“Navies need a lot more freedom; right now they are protecting and defending that area with pretty much one hand behind their back.”
http://www.lloydslist.com/ll/news/naval-intervention-is-bringing-somalian-pirates-to-book/20017604734.htm
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Harbor Wing's AUSVs will operate as environmentally friendly, tri-hull, high performance composite wind-powered craft, fitted with a hard wing airfoil sail. They will be fitted with hydrofoils for stability, seaworthiness and speed in performing their missions.
The AUSV's inherent platform stability will enable customized suites of ocean surveillance equipment including stabilized Infrared, thermal imaging and live video cameras to be mounted atop its sixty-foot-high mast to provide real-time feedback by satellite uplink or line of sight radio to its control platform. Because the AUSV will not require on-board personnel, Targets of Interest will be cost-effectively intercepted while more expensive vessels, helicopters or aircraft are freed for other mission assignments.
To further increase its value to on-shore commanders, Harbor Wing has proposed a technology demonstration project to prove the concept of leveraging and extending the individual capabilities of Harbor Wing's AUSV and another company's unmanned aerial system to carry out reconnaissance, surveillance and enforcement missions in designated Hawaiian waters.
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For Homeland Security/ Coast Guard / Customs and Border Protection applications the AUSV can provide narco-terrorism, law enforcement and drug interdiction surveillance for costal waters, ports, airports, power plants and sensitive facilities. In sensitive foreign areas and maritime choke points susceptible to piracy, drug running or open ocean assault, the AUSV can be used in conjunction with manned or unmanned aircraft for close-up observation and analysis of targets of interest and early warning of hostile, illegal or terrorist-related activity. Fitted with survival or communications gear, AUSVs pre-positioned on remote patrol stations could assist in search and rescue operations covering large areas of sea.
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A unique problem for Navy mine countermeasures is the need to continuously monitor previously cleared mine areas to ensure that no new mines are re-seeded into the area. The AUSV's small profile, minimal draft, negligible electronic/acoustic signatures and very low radar cross-section make the AUSV an ideal platform for monitoring areas susceptible to mines such as shipping channels, harbor entrances and littoral coastlines. Because the AUSV is unmanned, such missions will not risk onboard personnel, while its wind-powered maneuverability will permit long on-station times.
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South Africa - The Nuclear Navy Soft Power Oxymoron
There is a bit of bureaucratic and diplomatic noise coming from South Africa.
The National Nuclear Regulator (NNR) has denied the Russian nuclear cruiser Pyotr Veliky entry into Cape Town next week for not meeting certain requirements.
The regulatory body had received an application from the South African Navy on December 5 for a Nuclear Vessel License for the nuclear-powered vessel to visit Cape Town harbor from January 9 to 15.
However, there appeared to be some confusion as the advert appearing in local newspapers last week had the dates as January 12 to 17.
The law requires that the applicant advertise in local newspapers that it had applied for a license for a nuclear vessel to visit Cape Town. The public thereafter has 30 days to comment.
The article goes on to note the public announcement was made on December 12th, thus making January 12th the allowance date due to the 30 day public advisory notice mandated by law. The article also notes there were some other documents missing from the application.
This isn't the last word though, the application can still be fixed, but it is still unclear what happens even if the application is corrected and approved whether the ship will be allowed to enter port before January 12th, due to the 30 day mandatory public notice.
The USS Theodore Roosevelt (CVN 71) was the last nuclear ship to visit Cape Town, this past October actually, and was approved. I have a hard time believing the South African government is going to deny Russia access to the port after letting the US Navy dock an aircraft carrier just 4 months ago. It seems to me that would send an unnecessary signal to the Russian government.
While not a certainty, I think the most likely scenario here is that the paper pushers will get their act together and the Pyotr Veliky will be making port in Cape Town on January 12th. Keep in mind these are not trivial issues, and they are soon to be issues we have to deal with too.
Congress has changed the laws requiring virtually every future US Navy ship type to be nuclear powered, meaning diplomatic issues like this could become a lot more common in the future.
That would truly be stupid if you think about it, port visits by our big Navy ships is part of our soft power arsenal, seems to me the laws we develop for our Navy should support soft power, not make soft power a bureaucratic and diplomatic issue by adding nuclear power, something heavily regulated worldwide. After all, nothing says “We love the USA!” like a thousand sailors with wads of cash in hand making port in a foreign country and spending money.
If the future of the Navy is soft power, the considerations for a nuclear Navy need to be reviewed by Congress, as this is a huge political issue the Navy has found itself trapped in. The new administration will have to decide and will be the final word on these issues, absence of leadership in these types of discussions is not an acceptable option at the political level. Nuclear power, I'm all for it, but not in all cases.
This is a debate long overdue with the law already on the books.
Posted by Galrahn at 10:32 AM
http://informationdissemination.blogspot.com/
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EU Changes Tactics on Pirates, Goes Offensive
The latest news of French success against piracy is only half the story.
This is how the AFP is reporting the story.
"Three days after a French vessel thwarted an attack on a Panamanian cargo ship" the frigate Jean de Vienne conducted a "decisive action" against "two new attacks" it said in a statement.
"The 19 Somali pirates who tried to seize the two boats were intercepted," it added, saying they carried weapons, ammunition and material for boarding ships.
"They will be transferred to the Somali authorities," it added.
The French defence ministry said pirates attempted to attack a Croatian and a Panamanian ship and that French forces seized assault rifles, two rocket launchers, and more than 1,000 litres of oil.
I find these successes interesting, but check out the additional information from the official French Navy statement. There is something in there that goes beyond the simple "warship did X and captured Y" element of the event. Translation mine.
The pirates fled and were tracked by a Spanish maritime patrol aircraft. Subsequently the Spanish aircraft guided the Jean de Vienne to intercept the pirate boat. The pirate boat carried 9 Somali pirates, 5 equipped with assault rifles and one rocket launcher.
In other words, the suggestion here is that Operation Atalanta isn't just operating as a response to attacks anymore to scare the pirates off, but if a pirate attacks a ship, even if it is not successful the Europeans are now hunting down the pirate ship and taking prisoners. That is an enormous tactical change in the way anyone has been approaching pirates off Somalia to date.
That kind of proactive action could very easily create huge numbers of prisoners (noteworthy the French are turning them over to Somali authorities), but if the legal system in Somalia works (a big if), it might make a serious impact in curbing piracy over time.
Posted by Galrahn at 2:16 AM
http://informationdissemination.blogspot.com/
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US Shipping faces collapse after default
Rajesh Joshi - Tuesday 6 January 2009
US SHIPPING Partners, the troubled Jones Act tanker company, is on the brink of collapse after it revealed that it has defaulted on its senior credit facility.
The company said it remains in “good faith” negotiations with lenders over $332.6m in outstanding debt under a so-called “forbearance agreement”, but cannot assure the market that these could avert the possibility of the debt being called up.
The forbearance agreement obliges lenders to refrain from taking action on the company’s failure to make the December 31, 2008 principal and interest payments under the senior credit agreement.
A regulatory filing in the US states that the forbearance agreement is set to expire on February 10.
The company had defaulted on September 30 last year as well, but was able to stave off liquidation at that time.
Conditions tied in with the the forbearance agreeement this time around also include US Shipping continuing with its previously announced intention of finding a buyer or recapitalising itself.
US Shipping’s default came close on the heels of risk information provider Kamakura identifying the company as posing a high risk of debt default.
The news also comes immediately after US Shipping announced the departure of its chief financial officer Al Bergeron with him a $930,000 severance package.
Mr Bergeron is to receive a further $465,000 if there is a change of control at US Shipping before the end of December this year. The $930,000 is to be paid in equal semi-monthly instalments over two years. The severance comes with a two-year non-compete clause.
Mr Bergeron’s departure follows the exit last August of US Shipping’s chief executive Paul Gridley, who was replaced by Ronald O’Kelley.
US Shipping Partners floated in November 2004. Mr Gridley and his team in the summer of 2002 led a $200m buyout of the Amerada Hess US-flag tanker division, which was renamed US Shipping. The venture was taken public two years later.
US Shipping ran into trouble in the first quarter of last year. Declining spot rates, lower demand, tonnage over-supply, higher fuel prices, discontinuation of guaranteed charter business from Hess, and a lofty newbuilding programme that proved hard to afford and market, forced the company to put itself up for a possible sale.
Greenhill & Co and Jefferies were retained for exploring alternatives in this connection, including recapitalisation or injection of new equity.
Simultaneously, US Shipping saw its cash flows decline in a difficult market. In keeping with its own warning, the company ended up defaulting on its amended credit facility as at September 30 last year.
According to the quarterly report filed with US securities regulators in November, the senior lenders on the credit facility waived this non-compliance through to the months ending January 31 this year.
Alongside the announcement of Mr Bergeron’s departure, US Shipping also revealed that it had waived the trading ‘blackout’ on officers and directors of 15 days before the end of the fiscal year and ending three business days after publication of the partnership’s financial results for the 2008 fiscal year.
This is designed to allow continuing officers, including respected Hess veteran Joe Gehegan, “to sell prior to the end of the year certain of their common units for tax-planning purposes to offset gains they expect to recognize in respect of their subordinated units”.
US Shipping Partners owns six integrated tug barge units, three chemical tankers, one product tanker and two articulated tug barges.
One additional ATB remains under construction as part of a slimmer fleet portfolio, with delivery scheduled in November.
The company has suspended dividends as it tries to find its way out of its current fiscal darkness.
http://www.lloydslist.com/ll/news/us-shipping-faces-collapse-after-default/20017604814.htm;jsessionid=E6A84237B1BE7CAE58D8921BE62AE328
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Shanghai Port posts 27% profit growth
By Sandra Tsui in Hong Kong - Wednesday 7 January 2009
SHANGHAI International Port Group said today its unaudited net profit in 2008 rose 27% to Yuan4.6bn ($673m).
The operator of the world’s busiest port earned operating income of Yuan18.5bn last year, up 13% from a year earlier.
SIPG handled 369m tonnes of cargo last year, up 4.5% from a year earlier. Its container throughput rose 7% to 28m teu in 2008, lagging the firm’s 2008 target of 28.5m teu and looking set to remain as the world’s no.2 boxport in 2008 behind Singapore.
President Shen Xuyuan said last October that the global financial crisis had impacted the business of Shanghai port and the company had since then lowered its box handling target from the original 30m teu to 28.5m teu.
http://www.lloydslist.com/ll/news/shanghai-port-posts-27-profit-growth/20017604892.htm;jsessionid=E6A84237B1BE7CAE58D8921BE62AE328
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Regards
Snooper
NNNN
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